TOKYO -- Toshiba will offload the bulk of its holdings in Shibaura Mechatronics, a producer of chipmaking equipment, aiming to lighten its balance sheet and regain fiscal health.

The Japanese electronics conglomerate will sell up to 26.54% of Shibaura and retain about 10% under plans announced Monday. This will enable Toshiba to take the equipment maker off its consolidated balance sheet, as it intends to do with a number of noncore operations. Based on Shibaura's Monday closing price of 465 yen, the sale could bring in around 4.8 billion yen ($42.6 million).

Shin-Etsu Chemical unit Shin-Etsu Engineering has agreed to buy a 5% stake. Toshiba consolidated subsidiary NuFlare Technology will purchase up to 3.08% of Shibaura. Up to 16.05% will be sold to investors through SMBC Nikko Securities. The entire process will wrap up by mid-January.

Shibaura plans to work with Shin-Etsu Engineering and NuFlare to expand semiconductor-related operations.

(Nikkei)