Troubled Toshiba sells its medical devices division to Canon
by Agency Staff,
2016-03-17 18:55:26.0
JAPAN’S Toshiba has sold its medical devices unit to camera and office equipment maker Canon, for almost $6bn.
Toshiba is shedding businesses to recover from a major accounting scandal.
The deal on Tuesday came as Toshiba’s share price plunged nearly 8% after a report that it was under investigation by US authorities over allegations that it hid losses in its nuclear business.
Toshiba is expecting a whopping loss of about $6bn for the year to March due to sagging global demand and a profit-padding scandal, in which high-handed bosses for years systematically pushed their subordinates to cover-up weak financial figures.
In the wake of the scandal, Toshiba — a vast conglomerate that makes everything from rice cookers to nuclear plants — has ushered in thousands of job cuts, and plans to sell various business units in a bid to revive its fortunes.
In terms of the deal, Toshiba sold all its shares in Toshiba Medical Systems, a major producer of medical imaging tools such as MRI and CT scanners, to Canon for ¥665.5bn ($5.9bn).
Separately, Toshiba said it had reached a basic accord to sell a majority interest in its home appliance business to China’s Midea, though a Toshiba spokeswoman said a price for the deal had yet to be announced. She said the two sides were scheduled to reach a final accord by the end of March.
Sales in Toshiba’s home appliance business came to ¥225.4bn for the financial year to March 2015, the most recent annual figure available.
In December, Japan’s Securities and Exchange Surveillance Commission said Toshiba should be slapped with a record ¥7.37bn fine over the profit-padding scheme that hammered the reputation of one of Japan’s best-known firms.
Many Japanese high-tech companies are rushing to enter the medical field, as an ageing population boosts demand for healthcare services and tools.
Sony launched a medical joint venture with endoscope maker Olympus, which also went through a massive loss-hiding scandal and required a strong partner to rebuild itself.
Shares in Toshiba plunged 7.96% to ¥191.8 after a report said it is being probed by US authorities over allegations it hid $1.3bn in losses at its nuclear power operations. It had been up almost 5% before the story broke.
Bloomberg News, quoting unnamed sources, reported that the US Justice Department and the Securities and Exchange Commission were examining whether any fraud occurred.
Toshiba did not immediately respond to a request for comment on the report.
AFP
Toshiba's Kirabook is easy on the eye but pales in comparison to Apple's MacBook.
JAPAN’S Toshiba has sold its medical devices unit to camera and office equipment maker Canon, for almost $6bn.
Toshiba is shedding businesses to recover from a major accounting scandal.
The deal on Tuesday came as Toshiba’s share price plunged nearly 8% after a report that it was under investigation by US authorities over allegations that it hid losses in its nuclear business.
Toshiba is expecting a whopping loss of about $6bn for the year to March due to sagging global demand and a profit-padding scandal, in which high-handed bosses for years systematically pushed their subordinates to cover-up weak financial figures.
In the wake of the scandal, Toshiba — a vast conglomerate that makes everything from rice cookers to nuclear plants — has ushered in thousands of job cuts, and plans to sell various business units in a bid to revive its fortunes.
In terms of the deal, Toshiba sold all its shares in Toshiba Medical Systems, a major producer of medical imaging tools such as MRI and CT scanners, to Canon for ¥665.5bn ($5.9bn).
Separately, Toshiba said it had reached a basic accord to sell a majority interest in its home appliance business to China’s Midea, though a Toshiba spokeswoman said a price for the deal had yet to be announced. She said the two sides were scheduled to reach a final accord by the end of March.
Sales in Toshiba’s home appliance business came to ¥225.4bn for the financial year to March 2015, the most recent annual figure available.
In December, Japan’s Securities and Exchange Surveillance Commission said Toshiba should be slapped with a record ¥7.37bn fine over the profit-padding scheme that hammered the reputation of one of Japan’s best-known firms.
Many Japanese high-tech companies are rushing to enter the medical field, as an ageing population boosts demand for healthcare services and tools.
Sony launched a medical joint venture with endoscope maker Olympus, which also went through a massive loss-hiding scandal and required a strong partner to rebuild itself.
Shares in Toshiba plunged 7.96% to ¥191.8 after a report said it is being probed by US authorities over allegations it hid $1.3bn in losses at its nuclear power operations. It had been up almost 5% before the story broke.
Bloomberg News, quoting unnamed sources, reported that the US Justice Department and the Securities and Exchange Commission were examining whether any fraud occurred.
Toshiba did not immediately respond to a request for comment on the report.
AFP
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