Toshiba risks delisting, going out of business

Published April 11th, 2017 - 12:33 GMT
Toshiba has reported a loss of $4.8 billion and faces the possibility of a delisting from the Tokyo Stock Exchange. (AFP)
Toshiba has reported a loss of $4.8 billion and faces the possibility of a delisting from the Tokyo Stock Exchange. (AFP)

AFP has reported on Tuesday that Toshiba was at risk of going out of business as it reported a loss of $4.8 billion.

According to AFP, Toshiba had twice delayed its earnings and faced the possibility of a delisting from the Tokyo Stock Exchange if it missed the Tuesday deadline for reporting.

Read more: Saudi, Japan Mull Aramco Listing On Tokyo Stock Exchange

Following pressure from financial bodies, Toshiba announced unaudited results showing that it had lost ¥532.5 billion ($4.8 billion) in April-December 2016. 

The Japanese conglomerate had filed for bankruptcy protection last month after huge losses at its US nuclear subsidiary, AFP added.

It has been reported that Taiwanese giant Foxconn is offering to pay the cash-strapped firm up to ¥3 trillion yen ($27 billion) for its memory chip business. South Korea's Hynix, American chipmaker Broadcom and Foxconn are also among the firms in the running for Toshiba's flash memory business.

Read more: Oman: Listed Companies Report 20 Percent Fall In Net Earnings

On the other hand, Turkish electronics manufacturer Vestel said it is in talks to buy Toshiba's TV unit.

AFP said that Tokyo Stock Exchange has put Toshiba on a watch list and has been reviewing its governance following an earlier accounting scandal in 2015. That review could result in delisting, although the exchange "would likely give careful thought to delisting a company of Toshiba’s size."

The crisis comes less than two years after the firm's reputation was badly damaged by separate revelations that top executives had pressured subordinates to cover up weak results for years after the 2008 global financial meltdown, AFP concluded.

 


© 2000 - 2021 Al Bawaba (www.albawaba.com)

You may also like