2017.11.2001:33:00UTC+00Toshiba Shares Slide after Unveiling Cash Injection Plan

Shares of Toshiba Corp. slid by almost 5 percent in early trading after the group said that it would raise 600 billion yen by issuing $5.4 billion in new shares that would prevent the stock from becoming delisted.

On Sunday, Toshiba's board convened to approve the planned sale, which is seen to fill the balance sheet gap left by the troubled firm's bankrupt U.S. nuclear power. The share sale which will be offered to 60 overseas investors and amounting to almost half of the firm's current market value- together with tax write-offs would bolster Toshiba's assets to levels above liabilities.

The plan would help Toshiba to stay publicly traded even if the $18 billion sale of its chip unit to a consortium led by Bain Capital is postponed beyond the March deadline.

Toshiba shares fell by as much as 4.8 percent in early trading before reversing majority of the losses. They last traded 0.7 percent down, while the benchmark Nikkei average fell 0.2 percent.

Toshiba is slated to sell 2.28 billion new shares at 262.8 yen per share, lower than the stock's closing price of 292 yen. Payments from investors will be finished on December 5.