INTERNATIONAL – Toshiba has no immediate plans to sell its 40.2 percent stake in Toshiba Memory Corp, its chief executive told Reuters, as the world’s No. 2 producer of NAND flash memory chips prepares to go public within the next three years.
Toshiba’s stake is seen by some analysts as a concern at a time when overcapacity in NAND memory chips, used in smartphones and data storage servers, has pressured prices and forced companies to give a dull near-term outlook.
But Toshiba - which sold the chip business in June for roughly $18 billion and then reinvested $3.1 billion (R44bn) to gain voting rights - sees the stake as a boon.
The stake allows Toshiba to account for its former unit in its earnings, without having to further invest in it, chief executive Nobuaki Kurumatani said in an interview.
“We’re now in a position to benefit 40 percent of their profits while exempt from investment burdens,” he said.
“I think we have an appropriate balance.”