Toshiba to Boost Shareholder Return via Sale of Kioxia Shares

Economy

Tokyo, June 22 (Jiji Press)--Toshiba Corp. <6502> said Monday that it will sell shares in Kioxia Holdings Corp. to return over half of profits from its stake in the memory chip unit to its own shareholders.

Toshiba currently holds a stake of about 40 pct in Kioxia, formerly known as Toshiba Memory Corp., and plans to unload the shareholdings in stages after the possible stock listing of the unit this autumn. Kioxia's market capitalization is expected to reach several trillion yen.

In June 2018, the Japanese machinery and electronics giant, then facing a management crisis, sold the memory chip business to a consortium led by a U.S. investment fund for about 2 trillion yen. It later reinvested in the unit.

Toshiba said in a statement Monday that it "has no strategic intention to remain in the memory business" and "intends to realize the value of its investment in Kioxia."

The company also said it will "return a majority portion of the net proceeds (from the sale of Kioxia shares) to shareholders."

[Copyright The Jiji Press, Ltd.]

Jiji Press