Toshiba might sell Westinghouse nuclear business

Company - Mohit Shah - Mar 14,2017

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toshiba might sell westinghouse nuclear business

Japanese technology company, Toshiba, missed its second deadline to report earnings; President Satoshi Tsunakawa indicated that the firm might sell its major stakes in the US-based nuclear unit.

The struggling Tokyo-based conglomerate bought Westinghouse in 2006. However, this unit has ached huge cost over-runs.

 Currently, the firm is reevaluating the position of the US nuclear business within the group. As the company gained the approval to delay the announcement of its third quarter earnings until April 11, news regarding the selling of primary stakes in the Westinghouse unit was issued.

Considering the recent problems faced by Toshiba, the Westinghouse unit has been at the center during cost overruns on nuclear projects and related proceedings. 

According to Toshiba president Satoshi Tsunakawa, the company is working to nurture the growth businesses so that they yield stable growth by fiscal years 2018 and 2019 respectively. During the press briefing he also added, the company requires further reforms to conquer the difficulties budding from the accounting scandal and damages in the nuclear business.

Toshiba's chairman left his post last month and due to disparities with its auditors, the firm postponed publishing its results.

Also, last month, Toshiba announced a 712.5bn yen ($6.3bn; £5bn) decline since some of its US nuclear assets were valued quite less than estimated. 

On Tuesday, Toshiba said it is planning to sell assets close to 160 billion yen. The firm also plans to reduce the number of board members, with a further aim to manage the majority of directors outside the company.

The shares of the global tech giant gained 0.5 percent at the close in Tokyo; this increase came after a significant fall of about 8.8 percent.

To balance the upcoming decline, Toshiba is rushing to trade its cherished memory chip business, which is expected to be worth $13bn.