Deals

Toshiba Agrees to Sell Westinghouse Assets, Boosting Capital

Sale to close this month, adding capital of 410 billion yen
Toshiba expects to resolve negative shareholder equity

Signage for Toshiba Corp. displayed atop the company's headquarters is seen through a monorail train window in Tokyo, Japan, on Tuesday, March 28, 2017. Toshiba Corp. projected its annual loss could more than double to a record 1.01 trillion yen ($9.1 billion) as its U.S. nuclear unitWestinghouse Electric filed for Chapter 11 bankruptcy in New York court.Photographer: Kiyoshi Ota/Bloomberg

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By Pavel Alpeyev

January 18, 2018 at 12:03 AM UTC

Updated on

January 18, 2018 at 12:47 AM UTC

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Toshiba Corp. has agreed to sell claims in its Westinghouse U.S. nuclear unit to bolster its capital by 410 billion yen ($3.68 billion) by March, helping it to erase negative shareholder equity and avoid being delisted.

The Tokyo-based company plans to complete the sale of the claims to an entity controlled by the Baupost Group LLC this month, it said in a statement Thursday. The deal will generate after-tax profit of 170 billion yen. Toshiba shares rose as much as 2.9 percent in Tokyo.