Toshiba may sell smart me­ter firm for US$2b to raise cap­i­tal

New Straits Times - - Business -

Ja­pan’s Toshiba Corp is pre­par­ing a po­ten­tial US$2 bil­lion (RM8.9 bil­lion) divest­ment of smart me­ter group Lan­dis+Gyr, hop­ing to rake in cap­i­tal af­ter a write­down on its nu­clear unit last month, said peo­ple fa­mil­iar with the mat­ter.

Toshiba said it “is study­ing all op­tions to strengthen prof­itabil­ity and its cap­i­tal base, but no de­ci­sions have been made”.

Lan­dis+Gyr, in which Toshiba owns a 60 per cent stake, has more than 5,700 em­ploy­ees and is ac­tive in over 30 coun­tries.

It said last week sales would grow by nearly five per cent to US$1.64 bil­lion in the fis­cal year end­ing this month, adding it was “un­af­fected by Toshiba’s chal­lenges”. Toshiba bought Lan­dis+Gyr in 2011 for US$2.3 bil­lion with state­backed In­no­va­tion Net­work Cor­po­ra­tion of Ja­pan, which holds the re­main­ing 40 per cent.

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