Toshiba: Plan to monetise Kioxio stake, return majority proceeds to shareholders

Industry:    2020-06-22

Japan’s Toshiba Corp said on Monday it planned to monetise its 40.2% stake in former flash memory chips unit Kioxia Holdings, stating its intentions of a potential stake sale for the first time.

In a statement, Toshiba also said it planned to return a majority of the net proceeds to shareholders, a step that some activist fund investors have been demanding.

Toshiba plans to gradually unwind the Kioxia stake after the world’s second-largest flash memory chip firm lists its shares in an IPO later this year, people familiar with the matter said on Saturday.

Shares in Toshiba jumped more than 6% in early trade on Monday.

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