On November 14, Chinese home appliance maker Hisense Group announced that it will spend 110 million U.S. dollars to acquire the TV business of Toshiba Corporation of Japan. This is the second time that Chinese companies have taken over the assets of traditional Japanese home appliance giants. According to foreign media reports, Toshiba to transfer assets so surprising that the United States, while Western Digital is the main reason for Toshiba to sell off assets.
According to the announcement on Tuesday, in addition to gaining access to the television business, Hisense Group also won 40 years of Toshiba trademark use. Earlier, Hisense Group had acquired Sharp's trademark rights in North America for several years, but with Foxconn's Sharp resurgence of television business, Sharp and Hisense disputes.
According to the Financial Times, the television business of Toshiba, which has a long history, was transferred to Hisense for $ 110 million. Such a low price shows the devaluation of Toshiba's TV business so quickly and the determination and courage of Toshiba's management to quickly sell assets and solve the financial crisis.
In fact, Toshiba's transfer of television business is not unexpected. Recently, Toshiba executives have announced that they will consider various means, including the transfer of personal computers and television assets, to improve operational efficiency and address the current dilemma of Toshiba.
It is a well-known fact that Toshiba has carried out a write-down of more than 6 billion U.S. dollars in assets due to serious losses and operational mistakes of its U.S. nuclear power company Westinghouse, which has already brought nearly 9 billion U.S. dollars in economic losses to Toshiba . The current Toshiba is already insolvent, previously removed from the main board of the Tokyo Stock Exchange, into the second board market.
Earlier, after hard negotiations, Toshiba finally signed a takeover agreement with consortia led by the US capital leader Bain (including Apple, Dell, Hynix, etc.), Toshiba's most valuable flash memory chip subsidiary "Toshiba Storage" 180 100 million US dollars price transfer. This will make Toshiba transformed into a positive asset company.
However, the Financial Times pointed out that Toshiba's biggest difficulty in the above exchange was the legal challenge from data companies in the western United States.
For the past six months, Western Digital has been disrupting Toshiba's transfer of flash memory business. The company considers itself a joint venture partner of some of Toshiba's flash memory businesses and should have a say in the transfer. Western Digital had submitted an independent acquisition plan, but was rejected by Toshiba.
In addition to the continued obstruction of Western Digital, Bain Capital acquired Toshiba Storage Company transactions, but also faced the review of antitrust agencies in many countries.
If the transaction is still not completed at the end of March next year, Toshiba will be insolvent for the second consecutive year and will be delisted from the second board of the Tokyo Stock Exchange. Shareholders will suffer huge losses.
Faced with the uncertainty of the new flash exchange, according to several media reports recently, Toshiba is already considering the backup plan to ensure that will not be delisted.
Toshiba's backup plans include issuing equity financing and continuing to sell non-core assets. The transfer of the TV business to China Hisense, Toshiba backup program is an action.
It is reported that Toshiba will issue shares to raise 5.3 billion US dollars of funds. The news has led to Toshiba shares plunged last week, the current number of brokerage firms are already in contact with Toshiba, the stock is expected to be sold mainly to overseas investment agencies.
In addition to the TV business, Toshiba may be the future transfer of notebook business.
Last year, Toshiba, Fujitsu and VAIO companies had negotiated their hopes of merging the PC operations of the three companies into a new company, but the merger planned to go wrong. Recently, Fujitsu and China's Lenovo Group signed an agreement to buy the controlling stake in Lenovo's computer business. Last year, some people in the industry pointed out that the global influence of Toshiba's computer business has gradually disappeared and that the transfer of foreign affairs is only a matter of time.
The Financial Times also pointed out that in the past whenever Japanese companies transferred assets overseas, it would arouse domestic media attention and even some objections, but this transaction with Hisense, we all understand the current difficulties Toshiba, and therefore Not much criticism.
It should be noted that last year, Toshiba signed an agreement with China Midea Group to transfer its white goods business for about 500 million U.S. dollars. Midea Group also obtained a 40-year right to use the Toshiba trademark.