Toshiba sells TV, visual solutions unit to Hisense of China

November 14, 2017 by Yuri Kageyama
Toshiba sells TV, visual solutions unit to Hisense of China
In this April 11, 2017, file photo, a photographer is silhouetted before a press conference at the Toshiba Corp. headquarters in Tokyo. Troubled Toshiba Corp. is selling 95 percent of its TV and other visual products subsidiary to Chinese electronics maker Hisense Group. Toshiba, which needs to sell parts of its business to survive, announced the 12.9 billion yen ($113 million) deal Tuesday, Nov. 14, 2017. It's set to be completed by or after February 2018, pending regulatory approval and other steps. (AP Photo/Shizuo Kambayashi, File)

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 12.9 billion yen ($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.

Analysts and former employees say Toshiba, for decades one of Japan Inc.'s premier brands, was eager to get into the nuclear business because it saw it as a safe infrastructure investment, free of the seasonal fluctuations of the consumer electronics industry.

Explore further: Toshiba board decides on chip sale to Bain Capital group

Related Stories

Toshiba board decides on chip sale to Bain Capital group

September 20, 2017

Toshiba's board signed off Wednesday on selling its computer chip business to a group led by Bain Capital Private Equity, but the deal's future remains unclear as Toshiba's U.S. joint venture partner Western Digital opposes ...

Troubled Toshiba, Bain finalize sale of memory-chip business

September 28, 2017

Toshiba and a consortium led by Bain Capital Private Equity signed a deal Thursday for the sale of the Japanese electronics company's computer memory chip business, a move long opposed by Toshiba's U.S. joint venture partner ...

Bain hoping to settle with Western Digital on Toshiba deal

October 5, 2017

The investment fund heading the consortium that plans to buy Toshiba Corp.'s memory chip business said Thursday it will try to reach a speedy settlement with Western Digital, the U.S. joint venture partner of Toshiba that ...

Toshiba, Bain executives join in push for memory-chips sale

October 13, 2017

At Toshiba's flash-memory chip plant in Yokkaichi, the orderly quiet of the clean room, with its metal boxes zipping around on overhead rails, contrasts sharply with the messy feud between its owners over plans to sell this ...

Recommended for you

Printing microelectrode array sensors on gummi candy

June 22, 2018

Microelectrodes can be used for direct measurement of electrical signals in the brain or heart. These applications require soft materials, however. With existing methods, attaching electrodes to such materials poses significant ...

EU copyright law passes key hurdle

June 20, 2018

A highly disputed European copyright law that could force online platforms such as Google and Facebook to pay for links to news content passed a key hurdle in the European Parliament on Wednesday.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.