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Toshiba aims to raise $2.66 billion by selling preferred shares

Staff Writer |
Toshiba is considering issuing preferred shares to raise ¥300 billion ($2.66 billion) to avoid falling into negative net worth when it books a huge write-down on its nuclear business.

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The industrial conglomerate might issue nonvoting preferred shares convertible to stock in the flash memory business it will spin off, the sources said, Kyodo reports.

Toshiba said in December that it could book an impairment loss of “several billion dollars” on its U.S. nuclear business.

The losses could reach ¥700 billion, with Toshiba facing the risk of reporting greater liabilities than assets when it posts its business results for the year ending March 31.

Toshiba has said it will finalize the write-off by Feb. 14, when it reports earnings for the period from April to December.


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