Toshiba's shares rise on fresh reports its chip unit sale will rack up at least 2 trillion yen

Courtney Goldsmith
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The sale of Toshiba's chip unit will help cover huge writedowns (Source: Getty)

Toshiba's shares lifted more than seven per cent today after fresh media reports emerged reaffirming bids for at least 2 trillion yen (£14.5bn) for the company's memory chip business.

Offers from businesses including South Korea's SK Hynix are being considered as Toshiba sells its prized chip unit to cover losses from its US nuclear arm, Westinghouse, which filed for bankruptcy protection after incurring £5bn in impairment charges.

The troubled firm's stock has come under pressure as it works to fill the multi-billion pound hole that has caused it to miss two deadlines for its quarterly results. Shares fell further on the news that it may miss another deadline set for 11 April as its auditor, PwC, has questions about financial results for the business year through March 2016.

The writedowns could push Toshiba’s net loss for the year to 1 trillion yen (£7.2bn) compared with a previous estimate of 390bn yen, the company has warned.

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