Skyworth to buy stakes in 2 Toshiba units
Toshiba Corp said it would sell stakes of 5 percent each in two white goods manufacturing units to China’s Skyworth Digital Holdings, a move that comes amid a revamp of its operations in the wake of a $1.3 billion accounting scandal.
The sale is part of broad agreement in which Toshiba will use the Chinese electronics maker and retailer’s local distribution network to sell refrigerators, washing machines and vacuum cleaners.
Meanwhile, it will be winding down two China sales units.
Shares in Skyworth Digital jumped 7.5 percent by mid-afternoon.
Meanwhile, the benchmark Hang Seng index was down 0.7 percent.
Toshiba’s shares ended down 2.4 percent, in line with the broader Tokyo market.
Terms of the equity stake sales in the two China units were not disclosed by either company.
Following revelations that the Japanese laptops-to-nuclear power conglomerate had overstated income going back to fiscal year 2008 to 2009, the company’s Chief Executive Masashi Muromachi said this month he was considering a drastic overhaul of what he said were the company’s weaker operations.