Toshiba to Sell Shares in Chip Biz Kioxia

Economy

Tokyo, June 20 (Jiji Press)--Japan's Toshiba Corp. <6502> will sell shares in chipmaker Kioxia Holdings Corp. in stages after its expected stock listing, it was learned Saturday.

The electronics and heavy machinery maker hopes to use the proceeds to increase its rewards to shareholders through an own share buyback and other measures, informed sources said.

Toshiba has an equity stake of around 40 pct in Kioxia, previously called Toshiba Memory Corp.

Toshiba sold the semiconductor business for 2 trillion yen to a consortium led by a U.S. private equity fund in June 2018 to resolve its business crisis due mainly to massive losses at its U.S. nuclear business. Toshiba later made a reinvestment in the chip business.

Kioxia is aiming for a listing on the Tokyo Stock Exchange's first section within the year. Its market capitalization is expected to reach several trillion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press