Toshiba sells TV, vis­ual so­lu­tions unit to Hisense of China to stay in busi­ness

Chattanooga Times Free Press - - BUSINESS - BY YURI KAGEYAMA

TOKYO — Trou­bled Toshiba Corp. is sell­ing 95 per­cent of its TV and other vis­ual prod­ucts sub­sidiary to Chi­nese elec­tron­ics maker Hisense Group as part of its ef­fort to stay afloat.

Tokyo-based Toshiba an­nounced the $113 mil­lion) deal Tues­day. It’s set to be com­pleted by or af­ter Fe­bru­ary 2018, pend­ing reg­u­la­tory ap­proval and other steps.

Tokyo-based Toshiba is suf­fer­ing mas­sive losses from its nu­clear busi­ness. Its U.S. nu­clear op­er­a­tions at West­ing­house Elec­tric Co. filed for bank­ruptcy ear­lier this year. The Ja­panese elec­tron­ics, com­puter chip and nu­clear gi­ant said the deal will im­prove its fi­nan­cial re­sults.

Toshiba is meet­ing re­sis­tance from its U.S. joint ven­ture part­ner Western Dig­i­tal to its plan to sell its lu­cra­tive chips busi­ness to a multi­na­tional con­sor­tium led by Bain Cap­i­tal in­vest­ment fund.

Western Dig­i­tal has filed in the U.S. ar­bi­tra­tion court in San Fran­cisco to block the sale. The lit­i­ga­tion could take years, but a de­ci­sion is ex­pected soon on whether the sale would be sus­pended pend­ing res­o­lu­tion of the case.

Toshiba’s mas­sive red ink be­gan with re­ac­tors it has been build­ing in the U.S. which are still un­fin­ished, partly be­cause of beefed-up safety reg­u­la­tions fol­low­ing the 2011 Fukushima nu­clear dis­as­ter in north­east­ern Ja­pan.

AS­SO­CI­ATED PRESS FILE PHOTO

A photographer is sil­hou­et­ted be­fore a press con­fer­ence at the Toshiba Corp. head­quar­ters in Tokyo.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.