The Japanese tech company Toshiba announced that it is planning to split into three separate companies in an attempt to calm shareholders following years-long scandal.
The three new companies will be derived from Toshiba’s main divisions. One will focus on energy and infrastructure, the second will be dedicated to device and storage businesses while the third will take over Toshiba’s stake in Kioxia Holdings.
"After much discussion, we reached the conclusion that this strategic reorganisation was the best option," Chief Executive Satoshi Tsunakawa told the press.
The company’s decision was announced when the Japanese stock market was closed, however on other stock exchanges the stock price of the company dropped by almost 5%.
The split may fail as the Japanese law may view this operation as illegal due to anti-trust regulations.
However, Tsunkawa said that the Japanese government did not yet voice concern over Toshiba's rebrand.
It plans to finish its overhaul in roughly two years.