TOKYO, , (Pakistan Point News - APP - 28th Dec, 2016 ) - Toshiba shares dived more than 20 percent Wednesday, its second straight double-digit plunge, as the company said it may book a one-time loss of several billion Dollars over its US nuclear business. Toshiba's stock price dropped by 20.42 percent to 311.60 Yen, the largest fall allowed for a single day, about 30 minutes after the opening bell. On Tuesday, the Tokyo-based conglomerate said in a statement that costs linked to the acquisition last year by its US subsidiary of a nuclear service company will possibly come to "several billion US dollars, resulting in a negative impact on Toshiba's financial results".
The exact figure of the potential write-down is still being worked out, Toshiba President Satoshi Tsunakawa told reporters after the announcement, apologising for "causing concern". He answered in the affirmative when asked if Toshiba is considering boosting capital. The announcement came after Toshiba shares closed nearly 12 percent lower on Tuesday after media reports about the potential loss. Toshiba said the possible loss was related to the valuation of the purchase by subsidiary Westinghouse Electric of the nuclear construction and services business of Chicago Bridge & Iron.
Westinghouse and Chicago Bridge & Iron have turned to an independent accountant to resolve a dispute over differences in asset valuations, Toshiba said earlier this year. "Westinghouse has found that the cost... will far surpass the original estimates" of $87 million, Toshiba said, adding that will result "in (a) far lower asset value than originally determined".