Toshiba May be Considering Selling Toshiba Tec

Bloomberg News reports that struggling Toshiba Corporation of Tokyo, Japan, may be seeking to sell more assets in order to “repair a balance sheet facing multi-billion-dollar write-downs.” Among the businesses Toshiba may be consider selling is Toshiba Tec, which manufactures printers and copier/MFPs, and is a publicly traded subsidiary of Toshiba Corporation. Toshiba is said to have a 55-percent holding in Toshiba Tec, and its holding is said to be worth about 100 billion yen.

Its two biggest enterprises are said to be nuclear reactors and semiconductors, but other businesses include elevators, a hospital, software services ,and light bulbs.

Satoshi Tsunakawa, Toshiba’s president, said the firm is considering selling shareholdings, real estate, and other assets in order to come up with cash. “We will keep considering all options as needed and promptly, and take all necessary steps,” he said at a briefing in Tokyo Friday.

According to Bloomberg News:

“Toshiba is set to book a write-down of much as 700 billion yen ($6 billion) at its nuclear unit, and needs money in a hurry to secure the support of lenders. The company has already indicated that it’s willing to part with 20 percent of its computer-chip unit. Beyond that, there aren’t a lot of businesses that can be easily carved out. The nuclear unit is too much of a mess, and there are no obvious buyers for the smaller entities. All of this raises questions about what will be left of the company after its latest rout.”

Toshiba is said to be announcing a plan on Friday that will separate the chip business by March 31st, and raise cash.

More Resources