Toshiba shares drop 20%, hit daily limit

Toshiba Corp (6502.T) shares plunged 20% today (Wednesday), hitting the Tokyo exchange’s daily downward limit after the company said it could face a multi-billion dollar charge on a U.S. nuclear power business bought last year.

The surprise warning arrives just as soon as the group recovers from a $1.3 billion accounting scandal, as well as a writedown of more than $2 billion for its nuclear business in the last financial year.

Satoshi Tsunakawa commented that Toshiba was considering options to bolster its capital base, which could fall close to zero if Toshiba logs significant losses.

Toshiba has been on the Tokyo bourse’s watch list since the 2015 scandal, due to concerns about internal controls.

Toshiba executives gave no further details on the hit, adding the sum would be finalised by mid-February.

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