Toshiba is set to be dropped from Japan’s Nikkei 225 index
Toshiba is set to be dropped from Japan’s Nikkei 225 index amid financial issues
2017 has not been a great year for Toshiba, with the company suffering from major losses after their attempt to enter the US Nuclear energy market and their failure to sell a section of their profitable chipmaking business to recoup their losses.
Right now, Toshiba is in a legal battle with Western Digital, who are said to be preventing the sale of parts of the Toshiba memory corporation. This has resulted in a delay in selling this section of the business and has placed Toshiba in a bad financial position.
This is prompting Toshiba to try and find a plan-b to recoup their losses, with these financial difficulties placing tremendous strain on the company and has destroyed the company’s reputation.
On August 8th Toshiba will be removed from Japan’s Nikkei 225 share index, which lists the country’s top 225 companies. This is the first time that Toshiba has been removed from the index since its creation in 1950, with Toshiba being replaced with Seiko Epson, who is famous for creating watches and printers.
Toshiba’s legal battle with Western Digital could be resolved as soon as July 14th, which may allow Toshiba to finally sell a partial stake in Toshiba’s memory division. If this fails Toshiba will need to find another way to raise the $18 billion that they require to pay off their huge debts.
You can join the discussion on Toshiba’s financial issues on the OC3D Forums.