Shares in Japan’s industrial conglomerate Toshiba plunged 20.43 percent Wednesday, a day after the company said it could lose billions of dollars on its nuclear power business in the United States.
The 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, as the company failed to ease investor worries over the potential risk. It finished the session at that level.
Toshiba said on Tuesday that it might have to write off “several billion US dollars” in connection with the purchase of a US nuclear power plant builder that one of its companies, Westinghouse, had bought in 2015.
Toshiba said in the statement that this would have 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”.
Shares in Toshiba already dropped 11.6 percent on Tuesday after reports the company may book a loss of up to 500 billion yen (4.3 billion dollars) related to the deal.