On January 18th, Beijing time, Toshiba Group announced on Wednesday that it has agreed to sell its stake in Westinghouse, a nuclear power business unit that recently filed for bankruptcy, to a group led by the hedge fund Baupost Group. This strategic move is expected to significantly boost Toshiba's financial position. According to the company, the sale will generate 401 billion yen (approximately $3.68 billion), helping to strengthen its balance sheet.
Toshiba had previously revealed that it was in talks to transfer its shares in Westinghouse Electric to Brookfield WeCHoldings. However, the latest announcement confirms that the final deal is now being handled by Baupost Group. The company emphasized that out of the 401 billion yen received, around 240 billion yen represents the profit that Toshiba had accumulated from its ownership of Westinghouse, while the remaining 170 billion yen is after-tax profit.
In addition to this transaction, Toshiba also issued 600 billion yen in new shares last month, which, combined with the proceeds from the sale, will help the company avoid a net negative asset value at the end of its fiscal year in March. The company confirmed that the transfer of Westinghouse’s shareholdings to Brookfield will be completed at a price of $1 per share before March 31st.
This development marks a major step for Toshiba as it continues to restructure its operations and focus on more stable business areas. The sale of Westinghouse is seen as a necessary move to reduce financial risk and stabilize the company’s long-term outlook. Analysts believe that this deal could pave the way for Toshiba to invest more in emerging technologies and other core sectors.
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