Japanese company Toshiba said on Tuesday it has decided to sell its television business to China’s Hisense Group as part of its efforts to restore its balance sheet as they are struggling with that aspect of their business.
Toshiba agreed with the Chinese group(Hisense) to sell 95 percent in shares of its unit Toshiba Visual Solutions (TVS) for about $114 million, it said in a statement.
“Toshiba has been considering structural reforms that will … strengthen Toshiba’s financial base,” the firm said.
“It has become difficult for Toshiba itself to further invest its management resources and execute measures to strengthen the competitiveness” of the TV business, it said.
Toshiba further said, the best way to strengthen the business is “to transfer it to Hisense”.
The Japanese based entity made this declaration days after the firm record a net loss of $436 million for the fiscal first half, as it moves to complete the multi-billion-dollar sale of its chip business. Toshiba said in September it had formally signed an agreement to sell the chip unit for $177240000000 to a consortium led by US investor Bain Capital, which included US tech giants Apple and Dell as well as South Korean chipmaker SK Hynix after months of dabeting with competing bidders,
The deal is seen as crucial to the survival of the cash-strapped company, one of Japan’s best-known firms.The chip unit brought in around a quarter of Toshiba’s total annual revenue.
Toshiba is on the verge of collapse after the disastrous acquisition of US nuclear energy firm Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.