Toshiba board to approve plans to split off chip business on Friday

TOKYO: Toshiba Corp's board will meet on Friday to approve plans to make its chip business a separate company and hopes to raise more than 200 billion yen ($1.8 billion) by selling a 20 percent stake in it, a person with direct knowledge of the matter said.

The drastic measures are part of its efforts to offset an upcoming multibillion dollar writedown for its U.S. nuclear business.

Toshiba Chief Executive Satoshi Tsunakawa told its main creditors of the plans when visiting them earlier on Tuesday, said the person, who was not authorised to discuss the matter publicly and declined to be identified.

The laptops-to-nuclear conglomerate estimates the value of its chip business at 1 trillion yen to 1.5 trillion yen ($8.8 billion to $13.2 billion), the person said, adding that it was also looking at selling other businesses.

Toshiba is finalising the amount of writedown for its U.S. nuclear business, which could exceed 500 billion yen, separate sources have said. Domestic media have reported that the writedown could be as much as 700 billion yen.

Toshiba officials declined to comment.