Toshiba sinks 10% on reports of wider loss at US nuclear business

The logo of Japanese conglomerate Toshiba is seen on a wall of a building in Kawasaki, suburban Tokyo, on Dec 29, 2016.
The logo of Japanese conglomerate Toshiba is seen on a wall of a building in Kawasaki, suburban Tokyo, on Dec 29, 2016.PHOTO: AFP

TOKYO (BLOOMBERG) - Toshiba Corp fell in Tokyo trading after a report that the loss in its nuclear business may exceed the 500 billion yen (S$6.23 billion) maximum the company had flagged to its lenders.

The company asked Development Bank of Japan for financial support and is seeking help from other lenders, the Nikkei cited people familiar with the matter as saying. The company said in a statement it is still calculating the costs.

Shares of Toshiba, which has put a writedown of its nuclear equipment business in the billions of dollars, fell as much as 9.6 per cent to 260.8 yen in Tokyo on Thursday morning (Jan 19).

Toshiba has shed more than 30 per cent of its value since mid-December, when it surprised investors with a disclosure of a writedown in the billions of dollars. The unexpected move follows a profit-padding scandal in 2015 that led to record losses and prompted the company to cut staff and sell off businesses.

Toshiba said earlier it's considering spinning off its well-performing flash-memory unit to raise funds. The company is also considering a plan to raise funds by selling assets other than the chip operations to raise 300 billion yen, NHK reported on Thursday, citing unidentified individuals. Toshiba responded in a statement, saying it is still considering its options.