Japan's Toshiba says it will split into 3 firms

Japanese tech giant Toshiba Friday announced a plan to split into three companies "to create enhanced value for shareholders", according to a company statement.

The decision came after media reports said the management was under pressure from shareholders to augment the firm's value by dividing its businesses.

With this development, two companies will be dragged from the rest of Toshiba's operations-one focused on infrastructure and the second on devices.

The move is projected to take two years, with the aim of listing both new companies, Toshiba said.

"The separation allows each business to significantly increase its focus and facilitate more agile decision-making and leaner cost structures," it added.

"The separation plan is only the beginning of a process that contemplates a significant transformation of each independent company, positioning them better for sustained profitable growth while securing near-term returns for shareholders," it said.