TOKYO: Japan’s Toshiba Corp. on Monday announced a plan to split into two companies, revising its earlier plan that envisioned a three-way split.

Toshiba previously planned to spin off its two core businesses of infrastructure and devices into separate companies and take them public during the six months through March 2024.

But major shareholders have opposed the three-way split, leading Toshiba to change course only three months after announcing the plan.

Under the revised plan, Toshiba will spin off the devices business while keeping the infrastructure business and shareholdings in chipmaker Kioxia Holdings Corp.

Toshiba also said it will sell a 55 percent stake in air conditioner-making joint company Toshiba Carrier Corp. to US partner Carrier Global Corp. in a deal worth some 100 billion yen.

The deal is set to be completed by Sept. 30. Toshiba currently holds about 60 percent of Toshiba Carrier.

Proceeds from the sale will be used to reward shareholders and make investments for growth.

Toshiba also plans to start sales procedures for its elevator and lighting businesses, aiming to form definitive agreements by the end of March 2023.

The company also said it has designated Toshiba Tec Corp. as a noncore business.

Toshiba held an online briefing to explain its new business strategy to investors online Monday afternoon.

Another briefing will be held Tuesday to give explanations about the company’s strategy for the infrastructure and devices businesses.

JIJI Press