TOKYO: Toshiba said on Tuesday it has completed the sale of its claims against bankrupt US nuclear unit Westinghouse Electric, a move that allows the Japanese conglomerate to replenish its depleted capital base and remain listed.
The $2.16 billion sale, to a group of hedge funds led by the Baupost Group, will also come with tax benefits and improves Toshiba’s balance sheet by about ¥410 billion.
Liabilities at Westinghouse plunged Toshiba into crisis last year, and the beleaguered Japanese firm put up its prized memory chip business — the world’s second biggest producer of NAND memory chips — for $18 billion.
Toshiba also plans to transfer its stake in Westinghouse to Canada’s Brookfield Business Partners for $1 by March 31. Both deals will help clear a path for Westinghouse to emerge from bankruptcy.
The sale of the claims and a new share issue worth ¥600 billion to overseas funds have helped Toshiba avoid falling into negative net worth for a second consecutive year, allowing it to remain a listed company.
The funds have also meant that it faces less pressure to complete the sale of the chip unit to a consortium led by US private equity firm Bain Capital and some shareholders are pushing Toshiba to reconsider.
Toshiba, however, is sticking with its efforts to complete the sale of the chip unit by the end of March, saying it needs to further bolster the capital base.
Toshiba completes $2.16 billion sale of Westinghouse claims
Toshiba completes $2.16 billion sale of Westinghouse claims
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
