Toshiba has denied the media reports that it was in negotiations to sell the unit to Taiwan’s Asustek Computer Inc. The company said that it had not entered into talks with any company to sell its personal computer business.
It so happened that, the cash-strapped company has previously said it is looking to sell the PC business, a small part of the industrial conglomerate, as it races to bolster its balance sheet by the end of March to avoid a possible delisting.
Toshiba accounted for just 3.5 percent of Toshiba’s net revenue in April-September of 84.1 billion yen ($747 million).
Hit by liabilities arising from its now bankrupt U.S. nuclear unit, Toshiba has been plunged into financial crisis and agreed in September to sell its prized chip unit, Toshiba Memory, to a group led by Bain Capital for $18 billion.
But a highly competitive and contentious auction process led to delays in deciding on the buyer and has meant that Toshiba may not obtain the necessary anti-trust clearance by the end of the financial year in March.
Now, without funds from the sale, Toshiba likely to end the year in negative net worth for a second year in a row, putting pressure on the Tokyo Stock Exchange to delist it.
To refrain from this Toshiba is looking at raising about 600 billion yen ($5.3 billion) by offering new shares in a third-party allotment – and hopes to finalize the capital injection by the end of the year to allow for shareholder approval, as per the information shared by a source.
But there were reports from the company earlier this week that it would sell its television unit to China’s Hisense Group for 12.9 billion yen ($115 million).