Toshiba is selling 95 percent of its TV and other visual products subsidiary to Chinese electronics maker Hisense Group as part of its effort to blance its losses.
Toshiba will transfer 95 percent ofthe outstanding shares of Toshiba Visual Solutions Corporation (TVS), a consolidated subsidiary, to China's Hisense Group, and has signed share purchase
agreement with Hisense Electric Co., Ltd. (Hisense), a publicly listed subsidiary of Hisense Group.
The transfer will be completed on or after the end of February 2018, upon completion of necessary procedures such as government approvals. After the completion of the transfer, TVS will be deconsolidated from Toshiba Group.
The 12.9 billion yen ($113 million) deal is part of Toshiba's structural reforms in order to strengthen its financial base. The company is suffering massive losses from its nuclear business. Its U.S. nuclear operations at Westinghouse Electric Co. filed for bankruptcy earlier this year.
Toshiba positions Social Infrastructure, Energy, Electronic Devices
and DigitalSolutions as mid-term focus business domains and is concentrating its management resources in these domains.
The company is meeting resistance from its U.S. joint venture partner Western Digital to its plan to sell its memory 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.