Tokyo - Japanese industrial conglomerate Toshiba said Friday it
would spin off its core flash memory business to sell a stake in it
due to huge writedowns it expects in its nuclear power business in
the United States.
In a bid to help cover the losses, Toshiba said in a statement it
would make the chip business a separate company by March 31, the end
of the current financial year.
In late December, the company said it would have to write off
"several billion US dollars" in connection with the purchase of a US
nuclear power plant builder.
Read also: Toshiba fears larger than expected losses
Toshiba said it would disclose the exact amount of the writedowns on
February 14, when it reports quarterly financial results.
Shares in Toshiba surged as much as 2.8 per cent Friday afternoon
following the announcement.