Toshiba becomes Threeshiba: Individual companies to work better towards innovation
Toshiba is one of the ancient names for storage technology, along with a wide shelf of tech-related products. Recently, the company divided its business into three main components to replicate the forever known Toshiba to Threeshiba.
Toshiba is a popular name worldwide which is a Japanese industrial pride, but the company is being divided for its benefit and competing in the market. Parent company Toshiba Tec Corporation manufactures barcode kits, printers and many types of electronic gadgets. In a statement published by the company, they will sell off 40 per cent of the company to Kioxia, a Japanese memory-making company. Governance Enhancement Committee (“Report”) said it was established on 6 August 2021 to publish Toshiba’s report as a whole.
The GEC has been tasked with three primary missions: analyzing root causes, making suggestions to develop measures to prevent a recurrence, and clarifying responsibility issues. The company is currently going through a “pressure issue”, and thus, the report was initially developed on 10 July 2021. The basic policy “committee has no intention of reinvestigating the facts found on the Investigation Report.”
Effissimo sent a proposal for shareholders, and in response, the Security Trade Control Policy Division gave a positive signal. Mr Kamo and Director K1 sent written requests on the legal proceedings and took appropriate measures. Effissimo, on 19 May, sent another written request to elect four directors for the companies. That personnel were Mr Akira Takeuchi, Mr Tadaaki Sugiyama, Mr Yoichiro Imai and Mr Takashi Kosaka. Toshiba’s interim CEO Stoski Tsuankawa said they are “convinced that the business separation is attractive and compelling; it will unlock immense value by removing complexity.” He also said the decisions taken will have “more focused management, facilitating agile decision making, and the separation naturally enhances choices for shareholders.”
According to BBC, the three divided companies will focus on different infrastructures such as chips and devices. Due to the accounting scandal in 2015, activists and investors pressured the company, and it grew gradually. Although the changes happening throughout the company is easily recognisable by anyone reading the paper, we want to highlight the most noticeable changes. Toshiba will still own a 40.6 per cent stake in the memory maker Kioxia and other assets. By the second half of 2023, more changes will come related to the matter. At the moment, Toshiba’s stock values are quite shaky, so the partitions and staking will lift those restrictions and the value of stocks. Invest bank Jefferies, Atul Goyal said, “The move is in the right direction, but it seems slow. 2023 is a long way out, and we are not sure what else will change between now and then.” The matters raised concern as the company is too huge and empowers several people to function properly.
Toshiba is one of the companies that helped Japanese economic recovery after world war II and can be dated back to the 1870s. In 2015 the company said they overstated profit margin for the last six years to avoid bankruptcy. It remains one of the largest scandals in Japan. In 2018 Toshiba sold its most valuable asset, the chip business, to avoid bankruptcy.
However, according to the Governance Enhancement Committee (GEC), a series of acts are received from Director K2 as he is personally in charge of the whole Toshiba corp. Though the pandemic crisis hurt many businesses, Toshiba managed to stay strong and show its dominance in the tech market as a global tech partner. The Q2 2021 revenue margin grew by six per cent, which showed incredible promise towards upcoming proceedings.