Toshiba Corporation has reported its intent to separate into three standalone companies. Infrastructure Service Co., Device Co. and Toshiba. The separation will create two companies with unique business characteristics that lead their respective industries in realizing carbon neutrality and infrastructure resilience (Infrastructure Service Co.) and pushing the evolution of social and IT infrastructure (Device Co.). This will allow each business to increase its focus and facilitate better decision making and cost efficiency. The separation plan has been approved by the company board of directors.
Satoshi Tsunakawa, Interim Chair, President and Chief Executive Officer of Toshiba, said: “Over our more than 140 year history, Toshiba has constantly evolved to stay ahead of the times. Today’s announcement is no different. In order to enhance our competitive positioning, each business now needs greater flexibility to address its own market opportunities and challenges. We are convinced that the business separation is attractive and compelling: it will unlock immense value by removing complexity, it enables the businesses to have much more focused management, facilitating agile decision making, and the separation naturally enhances choices for shareholders. Our Board and management team firmly believe that this strategic reorganization is the right step for sustainable profitable growth of each business and the best path to create additional value for our stakeholders. We are grateful for the Strategic Review Committee’s thorough evaluation and recommendation on our best path forward.”
Paul J. Brough, Independent Director, Chairperson of Toshiba’s Strategic Review Committee, said: “We are pleased to share this bold and ambitious plan to deliver enhanced value for Toshiba’s shareholders and other important stakeholders. The SRC recommended to the Board that separating the Company into focused businesses is the best path forward for Toshiba and its shareholders following a thorough evaluation of value-enhancing options over nearly five months.”