Toshiba Tec sale being considered by Toshiba, could bring in JPY 100bn - report (translated)
12 MAR 2017
Toshiba [TYO:6502] has begun considering the sale of part or all of its shares in Tokyo-based POS cash register subsidiary Toshiba Tec [TYO:6588], the Nihon Keizai Shimbun reported.
The Japanese-language report disclosed, without citing any source, that Toshiba currently holds a 50.02% stake in Toshiba Tec, and the sale of all of its shares in the company would bring in an estimated JPY 100bn (USD 872m).
Toshiba experienced impairment losses at its US subsidiary Westinghouse Electric, the report said. It said the planned sale of its flash memory unit is a primary element of current efforts to raise funds.
Toshiba Tec is financially sound and has little relation to the infrastructure, energy (not including nuclear energy) and information technology sectors that Toshiba is planning to focus on as it rebuilds, the report said. An advisory company has already been selected to find a buyer and to carry out the necessary procedures for the sale of Toshiba Tec, the report added, noting that the size of the stake sale will be determined going forward.
Taiwan-based Hon Hai Precision Industry [TAI:2317] and investments funds are considered potential buyers, the report said.
Other possible sale targets likely being considered by Toshiba include Toshiba General Hospital, as well as shares in semiconductor maker NuFlare Technology and Shibaura Mechatronics, the report added.