Toshiba's plan to split business in three

Japanese conglomerate Toshiba has revealed its plan to restructure into three separate entities.

Toshiba announced on Friday it will set up two new firms. One will focus on infrastructure, including electricity generation. The other will manufacture hard disks and other electronic devices.

The main business unit will be maintained as a shareholding company of Kioxia Holdings, a memory chip maker that was spun off from Toshiba.

President and CEO Tsunakawa Satoshi said the separation would enable the new companies to achieve growth in their sectors, while maintaining Toshiba's overall management philosophy.

Toshiba management has been at odds with activist investment funds that prioritize shareholder value. Analysts say the three-way split is aimed at gaining their support and understanding.