Toshiba Seeking to Sell TV Business to Chinese Company for $114 Million
Toshiba Corporation of Tokyo, Japan, reported this week that it will be selling 95-percent its TV and visual-products subsidiary, Toshiba Visual Solutions Company, for 12.9 billion yen ($114 million) to Chinese company Hisense Electric Company, as it seeks to cover losses from its bankrupt Westinghouse Electric group, and avoid being de-listed from the Tokyo Stock Exchange. Toshiba is also seeking to sell its memory-chip business, Toshiba Memory Corporation, to a consortium led by private-equity firm Bain Capital. Toshiba’s partner in the memory-chip business, Western Digital, has been seeking to block the sale, however.
Toshiba notes that if the sale of the TV subsidiary goes through, it will have a “positive impact” on its current fiscal year that ends on March 31, 2018, as it expects to reap of profit of 25 billion yen ($22 million ) from the sale, but has not revised its forecast to reflect the expected profit.
Earlier this month, Toshiba reported results for its six-month fiscal period ending on September 30, 2017, with net sales up 115.5 percent to 2.3 trillion yen ($21,116.9 million), and a net loss of 49.8 billion yen ($440.6 million).
Last month, Toshiba had said that it expects to record a net loss of nearly $970 million (110 billion yen) for its current fiscal year after taking into account taxes related to the proposed sales of Toshiba Memory Corporation.
The company’s Storage and Electronic Device Solutions, including its memory-chip business, continued to see sales increases and reported a 76-percent increase in operating profit for the period.
Although Toshiba reported a loss for the period, it reported operating income of 231.8 billion yen ($2,051.0 million), an improvement of 138.6 billion yen.
Toshiba’s Retail and Printing Solutions’ business saw flat sales, “reflecting the sale of a Retail business subsidiary,” although the Retail and Printing business both “recorded solid performance.”
- November 2017: Toshiba Reports Loss for Half, but Memory Business Records Strong Performance
- October 2017: Toshiba Revises Forecast, Expects Net Loss of Almost $1 Billion
- September 2017: Western Digital Seeks Injunction to Stop Sale of Toshiba’s Memory Business
- September 2017: Toshiba Says it Will Sell Memory Business to Consortium Led by Bain Capital
- August 2017: Troubled Toshiba Said to be Close to Selling Memory-Chip Business (Updated)
- August 2017: Toshiba Reports $8.8 Billion Loss for Fiscal Year
- July 2017: Epson to Replace Toshiba on Tokyo Stock Exchange
- July 2017:Toshiba Served with New $83 Million Lawsuit; 28 Lawsuits in Total
- July 2017: Nikkei Demotes Toshiba on Tokyo Stock Exchange; Faces Delisting
- June 2017: Toshiba Sues Western Digital; Fails to Meet Self-Imposed Deadline to Sell Memory Business
- June 2017: Toshiba Being Sued for $399 Million for Accounting Irregularities
- June 2017: Western Digital Seeks to Block Toshiba’s Sale of Memory-Chip Business
- June 2017: Toshiba Determined to Sell Memory-Chip Business Despite Hurdles
- May 2017: Toshiba Not Reporting Audited Full-Year Financial Results at Shareholders’ Meeting
- April 2017: TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties