Angry investors okay chip unit sale
CHIBA: Angry investors lambasted Toshiba executives at a shareholders meeting, here, yesterday after it warned annual losses could balloon to more than US$9 billion (RM39.7 billion) but agreed to the sale of its memory chip unit, the jewel in the firm’s crown.
The heated meeting comes a day after the huge conglomerate said its troubled atomic reactor maker Westinghouse Electric had filed for bankruptcy protection in the United States.
Toshiba, one of the pillars of corporate Japan, warned on Wednesday its annual losses mainly tied to Westinghouse could blow out to 1.01 trillion yen (RM40 billion), compared with an earlier projected shortfall of 390 billion yen.
The company has delayed formally reporting its earnings over the problems at Westinghouse, including whistleblower claims about accounting misconduct by senior executives at the unit.
Yesterday’s meeting was held to get shareholder approval to spin-off Toshiba’s memory chip business, seen as key for the company to turn itself around. The motion was approved.
“It’s unforgivable that they could book a trillion yen loss — management should quit,” said a 75-year-old investor.
Meanwhile, in Shanghai, China’s State Power Investment Corp said Westinghouse’s bankruptcy filing would not have a “substantial impact” on the country’s nuclear plans and the two sides would ensure a key AP1000 reactor project would be completed on schedule this year. Agencies
Shareholders arriving at Toshiba’s extraordinary shareholders meeting in Chiba, Japan, yesterday.