Toshiba Sells Medical Leasing Business to Canon for US$277 Million

Japanese electronics giant Toshiba Corp is reportedly selling its stake in a medical equipment leasing firm Toshiba Medical Finance Co to Canon Inc for JPY31.4 billion (US$277 million).

The announcement followed reports that the Japanese multinational conglomerate is eyeing to generate at least JPY1 trillion from the sale of its stake in its memory chip business.

The Japanese conglomerate had earlier decided not to sell any stake in its chip business before the 31 March end of the current business year, in a move that makes it certain the company will have a negative net worth at the year’s end.

It has also sold its household appliance unit to Midea of China, which is maintaining the Toshiba brand name.

READ ALSO: Toshiba’s Stock Plunges on USD8.8bn Chip Business Sale Report

In a statement, Toshiba said it will sell its entire 65% stake in the medical equipment leasing unit to Canon effective 31 March, ending a year-long negotiation.

The company has been selling off lucrative businesses after suffering massive losses in its nuclear business. It is projecting a JPY712.5 billion loss for its nuclear business, and has been unable to report April-December financial results.

Toshiba’s stock (TYO:6502) was trending at the Tokyo Stock Exchange Wednesday morning, gaining 7.02% to 196.90 a share. The company earlier reported net profit margin of -15.65% and operating margin of -12.50% for 2016. –