Toshiba considering total sell off of chip business

Until today, Toshiba had only offered to sell a 29.9% share in its chip business for which it is said to have been offered as much as $3.6 billion.

Now however, it is saying it could sell a majority stake in the unit or even a complete sale of the entire semiconductor business.

The desperate measures come as Toshiba tries to avoid declaring itself insolvent at the end of its financial year at the end of March.

Toshiba chairman Shigenori Shiga has announced his resignation to take effect tomorrow.

Toshiba said this morning it will take a $6.3 billion charge after losses and liabilities in its nuclear business resulting in a corporate loss of $4.4 billion loss in the nine months to the end of December 2016 and a $3.4 billion loss for the financial year to the end of March.

As a result shareholders’ equity at the end of December was minus $1.7 billion.

With assets no longer worth more than its debts, and to avoid being insolvent at the end of the financial year, Toshiba has to repay debts by selling assets, or add equity through financing or turning a profit by the end of March.

It can’t raise money on the stock exchange due to the exposure of accounting irregularities last year. So selling assets is the only way forward.