Toshiba says it is ready to transfer 80.1 percent of its shares in the personal computer business to Sharp due to the financial condition of Toshiba Client Solutions.
The Japanese multinational company announced that will transfer 80.1% of the outstanding shares of Toshiba Client Solutions Co., Ltd, a wholly owned subsidiary in the personal computer business, to Sharp Corporation under a share purchase agreement.
According to Toshiba, the two companies signed a share purchase agreement to anticipate completion of all required procedures that involves government approvals and the transfer of the stock by October 1, 2018.
Toshiba further stated that once the share transfer is closed, its Toshiba Client Solutions Co Ltd will be separated from Toshiba Group. The company says its Personal computer business was transferred to TCS on April 1, 2016 as part of a wide ranging structural reform.
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” TCS subsequently implemented a series of measures to stabilize the business, including shifting its focus to BtoB business, reviewing personnel and operating sites, and ending ODM procurement, while also investigating various strategic options with third parties”, Toshiba says.
Sharp has been chosen to partner with Toshiba to strengthen Toshiba Client Solutions, increase its corporate value, and secure global competitiveness and continued development of the business, Toshiba says while promising that it will continue to provide brand licensing for PC products and equipment designed, manufactured and sold by TCS.
“TCS will continue to provide its customers around the world with products and services that reflect their needs. TCS was established on April 1 2016 by a company split of Toshiba Group’s PC business and its merger with Toshiba Information Equipments Co., Ltd. The company changed its name to Toshiba Client Solutions Co. Ltd. (TCS) on April 1, 2016”.
The company went further to say that the agreement also involves the transfer of Toshiba subsidiaries engaged in the PC business to Sharp. Toshiba added that the purchase price will be determined by the TCS’s financial condition dated December 31, 2017.
According to the company “Toshiba Information Equipment (Hangzhou) Co., Ltd. (TIH), Toshiba Client Solutions Canada Ltd. (TCSC) and Toshiba Client Solutions ANZ Pty, Ltd. (TCSAN) shares will be transferred from Toshiba Group companies to TCS. PC related operations at Toshiba America Information Systems Inc. (TAIS), Toshiba Europe GmbH (TEG) and Toshiba Singapore Pte., Ltd. (TSP) will be transferred to new subsidiaries that TCS will establish, and all subsidiaries of TCS, including Tama Toshiba Information Equipments Co., Ltd. (TJK), will become Sharp affiliates as a result of the transaction. When these measures are completed, TJK, TIH, TCSC and TCSAN will be deconsolidated from Toshiba. The details will be further discussed and agreed upon by Toshiba and Sharp”.
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