Japanese conglomerate Toshiba is reportedly considering splitting into three firms. The struggling company is looking to raise its market value, streamline its operations and respond to a shareholder revolt.
Toshiba's sprawling corporate structure includes nearly 300 subsidiaries. Sources say the idea is to group them into three sectors: infrastructure, electronics devices and memory chips. They say the three new firms would aim to get listed in about two years.
A split of this kind is extremely rare for a Japanese conglomerate. Toshiba is trying to rebuild itself after an accounting scandal that surfaced in 2015 and huge losses in its nuclear power business.
Activist shareholders have been turning up the pressure this year, ousting the board chair and another board member in June.
A restructuring could boost corporate value and relieve some of that pressure.
Toshiba is expected to include the proposal in a management plan to be announced Friday.