Toshiba has announced that it will sell its TV department, along with other visual components, to a company based in China. The purchasing company, Hisense Group, is an electronics manufacturer. Close to 95 percent of the TV and visual products subsidiary of Toshiba is being sold in the deal. Toshiba has committed to making the sale in an effort to keep the company afloat during a difficult period.
The announcement was made by Toshiba on Nov. 14. The deal is worth $113 million. Pending regulatory approval, the deal will be completed by or around February 2018. The company, based in Tokyo, is struggling mightily because of its nuclear program. The company's nuclear program, based in the United States, filed for bankruptcy earlier in 2017. The nuclear program is headquartered at Westinghouse Electric Co. Toshiba hopes that the deal will help to solve its financial problems.
The company is receiving pushback on the deal from Western Digital, their joint venture partner in the United States. Western Digital does not want Toshiba to sell the company's chip business to a consortium that is being led by an investment fund from Bain Capital.
Western Digital filed to block the sale in San Francisco in arbitration court. A decision is looming whether or not the sale will be put on hold if litigation moves forward in relation to Western Digital's filing.
Is your business in need of an experienced business law attorney? Business law is an important part of operating any type or size of business in New Jersey. An experienced business law attorney can help guide you through the most challenging business issues.
Source: New Jersey Herald, "Toshiba sells TV, visual solutions unit to Hisense of China," Nov. 14, 2017