Toshiba, one of globally renowned giants partaking in Japan electronics and media market share, has inked a deal on Tuesday to sell its television subsidiary, Toshiba Visual Solutions to China’s state-owned enterprise, Hisense Co, Ltd. Reportedly, the stake sale pact is among the latest in company’s persistent efforts to redeem its fortune, post suffering huge losses from its nuclear reactors manufacturing business, that led to the U.S. based nuclear operations of the firm filing for bankruptcy in early 2017.
For the record, Toshiba has been divesting its departments since its accounting scam came to light in 2015. The company had already sold its sensor operations to Sony in 2015 for an estimated $155 million. Furthermore, it recently sold its NAND flash memory division as well, to Bain Capital for $18 billion. According to sources, Toshiba’s downfall is attributed to the strict safety guidelines by the U.S regulators in the aftermath of the 2011 Fukushima catastrophe.
Meanwhile, Toshiba’s television subsidiary had posted an operating loss of $54 Million in the previous fiscal year. The deal features the sale of 95% stake of Toshiba Visual Solutions to Hisense, at a valuation of more than $113 Million. Toshiba is likely to hold a 5% stake in the subsidiary.
Interestingly, the Japanese electronics maker, Sharp Corporation had filed a legal suit against Hisense, alleging that the Chinese firm had denigrated its brand value by selling substandard Sharp TVs and advertising false features of Sharp’s products. However, the latest stake acquisition of Toshiba’s subsidiary has been reported to benefit Hisense, as the firm may escalate its 4K laser TV production, further positively impacting the electronics and media market.
Industry experts anticipate no new product launches at the International Consumer Electronics Show, the largest tradeshow of electronics and media industry, as the deal, by all accounts, is likely to conclude by February.