Toshiba Corp. announced that it is aggressively looking for a sale as well as other financially strategic possibilities for their U.S. nuclear unit Westinghouse. The company is dealing with an expanded probe into problems with the unit that caused it to miss an earnings deadline for a second time.
The Japanese manufacturer said it plans to find buyers for a majority stake of the unit, despite the potential for future losses as the unit had a stable fuel and services business, Reuters reported. Chief Executive Satoshi Tsunakawa said: “We are working on nurturing our growth businesses to return to stable growth by fiscal years 2018 and 2019.”
“Around 80 percent of Westinghouse’s revenues come from stable businesses in services and fuel-related businesses so I think that will be taken into consideration too,” he told a news conference.
In a separate announcement, Tsunakawa separately revealed that Toshiba would be taking national security concerns into consideration when looking and selecting bidders for its memory chip unit. This new revelations puts U.S. companies at a major advantage when negotiation with Japan, as Japan’s government is worried about the loss of key technology to China.
Toshiba now has a new extension dated April 11 for the company’s third-quarter earnings, following the postponement of audited earnings a month ago. If Toshiba fails to meet that deadline again and does not gain another extension, the company will have until April 21 to submit the earnings or be delisted.