Toshiba falls on reports of wider loss at nuclear business
Toshiba Corp. fell in Tokyo trading after a report that the loss in its nuclear business may exceed the 500 billion yen ($4.4 billion) maximum the company had flagged to its lenders.
The company asked Development Bank of Japan Inc. for financial support and is seeking help from other lenders, the Nikkei cited people familiar with the matter as saying. Toshiba, which has put a writedown of its nuclear equipment business in the billions of dollars, fell as much as 9.6 percent to 260.8 yen in Tokyo on Thursday. The company said in a statement it is still calculating the costs.
Toshiba has shed more than 30 percent of its value since mid-December, when it surprised investors with a disclosure of a writedown in the billions of dollars. The unexpected move follows a profit-padding scandal in 2015 that led to record losses and prompted the company to cut staff and sell off businesses. Toshiba said earlier it’s considering spinning off its well-performing flash-memory unit to raise funds.
The company is also considering a plan to raise funds by selling assets other than the chip operations to raise 300 billion yen, NHK reported Thursday, citing unidentified individuals. Toshiba responded in a statement, saying it is still considering its options.
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