AfterDawn: Tech news

Toshiba announces $6 billion asset sale

Written by Andre Yoskowitz (Google+) @ 18 Mar 2016 21:55

Toshiba announces $6 billion asset sale Struggling tech giant Toshiba has announced a $5.9 billion asset sale alongside a large investment into its chip businesses.
The company has been marred by an accounting scandal in the past couple of years in Japan, and the U.S. Department of Justice is also investigating potential fraud for the Toshiba-owned Westinghouse Electric, a nuclear power company based in the U.S.

Almost comically, one part of Toshiba's asset sale is already being questioned. The company is selling its medical equipment unit to Canon, but Toshiba has transferred the unit to a special purpose company which will allow them to book any sale proceeds this year, even if the deal takes years to complete (there are expected monopoly issues).

If all their asset sales are completed, the company will invest 360 billion yen ($3.2 billion) over the next three years to build a new semiconductor facility in Japan to focus on flash memory.

Source:
Reuters

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