In the name of maxmising each business' value.
World Nuclear News reported that Toshiba Corp said it will establish its four in-house companies as wholly-owned subsidiaries and aim to "to maximise the value of each business". As of 1 October, it will split off its Energy Systems & Solutions Company, and the Nuclear Energy Systems & Solutions Division, and transfer them to a newly established company.
The decision announced follows the 'Strengthening Toshiba Group's Organisational Management', as disclosed in 'Measures to Rebuild Toshiba' announced on 14 March. On the same date, Toshiba also announced its intentions in respect of 'Eliminating Risk Related to the Overseas Power Business', "which has been realised" by the start of Chapter 11 proceedings that "eliminate" Westinghouse from its 2016 financial year consolidated earnings results, as was announced on 29 March.
From 1 July, the other three companies to be established as independent business entities are Infrastructure System & Solutions Company, Storage & Electronic Devices Solutions Company, and Industrial ICT Solutions Company.
The changes will allow the new companies "to clarify their responsibilities to the market and customers, which will ultimately support maximisation of their business value", Toshiba said. They will also "aim to refine governance and risk management structures so as to match their diverse business environments, and will directly secure the services of external auditors", it added