In order to avoid delisting from the Tokyo Stock Exchange due to insolvency, Toshiba is accelerating the sale of its assets to fill funding loopholes Toshiba further announced that it will consider the sale of the United States Westinghouse-related assets to third parties after the sale of television business in November It will raise 600 billion yen by issuing new shares.
In March of this year, the bankruptcy of Westinghouse Electric Co., a subsidiary of Toshiba's nuclear power company, pushed the century-old shop to almost Jedi. According to the results of the financial report, Toshiba's net loss for FY2016 (as of March 31, 2017) was as high as 965.7 billion yen, A total of 8.8 billion U.S. dollars, setting the largest full-year loss in the history of Japanese manufacturing companies, which is the third consecutive year Toshiba's loss.
Toshiba, Japan's electronics manufacturers such as Sharp, Panasonic, Sony, Hitachi and other Japanese electronics companies in recent years, is the collective collapse of the Japanese electronics manufacturing company, represented by Toshiba, behind the failure of the nuclear power business, Toshiba had to frequently sell off its assets for survival. Have experienced financial crisis and 'downsizing', and even embarked on 'sell themselves', the road to fraud, Japanese manufacturing enterprises have long been brilliant.
Sale of assets to avoid delisting
Toshiba recently announced that it has decided to transfer 95% of its stake in Toshiba Video Solutions Co., Ltd. to Hisense Group for an interim payment of Rmb12.9bn, or about Rmb750mn, which is estimated to be after February 28, 2018 Complete the transfer procedures.According to the agreement, Hisense Electric will enjoy a package of products such as Toshiba TV products, brands, operations services, and will have 40 years of brand licensing Toshiba TV.
In addition to selling home appliances business, in September this year, Toshiba agreed to sell its most profitable memory chip business to the United States led by Bain Capital consortium To make up for the deficit brought by the nuclear power business, the transaction amount is about 2 trillion yen (about 18 billion U.S. dollars).
Toshiba recently announced second quarter fiscal 2017 earnings report, it is because of its strong performance of the memory chip business, second-quarter operating profit rose 76% in the second quarter, Toshiba said it will be the financial year's chip business capital investment From the original 400 billion yen to 600 billion yen.
The industry believes that the sale of Toshiba chip storage business this transaction still need to pass the antitrust review of various countries, Toshiba worried that the sale proceeds can not be in place by the end of March next year, so Toshiba had to consider the sale of television business.
Toshiba China told the "China Business" reporter in an interview that it is now properly promoting the acquisition of memory and strive to complete the transaction by the end of March 2018, at present in a total of 8 countries and regions around the world have proposed antitrust Law review application.
Toshiba to sell its storage business on December 13 a major obstacle to clean up Toshiba announced that the United States Western Digital Co., Ltd. reached a settlement agreement, the two sides will revoked previously submitted to Japan and the United States court litigation application after Toshiba sold memory business Western Digital was involved in the bidding but due to unsuccessful bidding, Western Digital subsequently applied for judicial arbitration with the previously concluded joint production agreement. It said that the transaction between Toshiba and a third party may harm Western Digital's interests and apply to the court for Toshiba flash memory product sales order.This time the two sides reconciliation, Toshiba said it will strengthen cooperation with Western Digital in the future, and is expected to accelerate the storage business sales process.
At the same time, Toshiba is also considering the sale of Westinghouse, a huge bag of Toshiba years dragged down Toshiba announced on November 19 that it would consider selling nuclear-related US Westinghouse assets and attempting to issue shares faster by issuing shares To obtain financing, the resolution to issue new shares by way of distribution to third parties, the total issue of about 600 billion yen, and on December 5 to pay off the money.
Toshiba said the funds raised are set to be used for a one-time repayment of the parent company's security deposit related to Westinghouse's U.S. nuclear power plant construction project and to solve the immediate problem of lifting 750 billion yen by the end of March 2018 Debt overweight problem. By then, the company can avoid delisting.
All this stemmed from Toshiba's $ 5.4bn acquisition of US nuclear power technology company Westinghouse in 2006 to expand its nuclear power business.At that time, Toshiba was fully betting on its nuclear power business and continued to divest its non-core businesses to obtain liquidity as nuclear power Business 'blood transfusion' and even the sale of the Toshiba Ginza headquarters building and the corporate office building.
However, a major earthquake hit northeast Japan in 2011, which triggered a bombing of the Fukushima nuclear power plant that shocked the world. This directly led to a global distrust of nuclear power. Some EU countries announced that they would withdraw from nuclear power and Toshiba's nuclear power business was also hit. Heavy hit.
Toshiba financial fraud scandal exposed in 2015, spanning eight years (2008 ~ 2015), spanning three generations of president, earnings amounted to $ 1.6 billion in whitewashing to cover the loss of nuclear power business.Toshiba Securities was therefore the Tokyo Stock Exchange Included in the 'delisting watch list'.
Japanese manufacturing ebb?
TOSHIBA is seeking a freshman in the information provided to our reporter about the future development of Toshiba, Toshiba mentioned that in order to achieve Toshiba renewable, the next step will be to rule out the risks of Japan's overseas nuclear power business, as soon as possible to restore and strengthen Financial basis, and strengthen the operation of Toshiba Group, including Westinghouse in Toshiba Group's position and continue to sell assets Toshiba said that under the medium-term plan, Toshiba will be social infrastructure, energy, electronic components, ICT solutions As a key business area.
'For Toshiba, the current' injured is not small ', but should not be delisting. The restructuring can be a good thing can be a bad thing.' China Institute of Contemporary International Relations Institute of Japan researcher Liu Junhong told this reporter if Toshiba can take this opportunity to get rid of the burden of nuclear power, for the future of Toshiba in the high-end manufacturing competition is a good thing, but if not handled decisively, it will delay some time, or even missed some good opportunities.
In fact, Toshiba is only a microcosm of Japanese manufacturing enterprises in the context of globalization, manufacturing costs in emerging economies increased significantly, the past became synonymous with Japan's Toshiba, Sharp, Sony and other consumer electronics and home appliances, the scenery is not Another example, such as Sharp by Taiwan's Hon Hai Precision Acquisition, Sony, Hitachi have shrinking front, and the fraud scandal is also frequent in Japan, manufacturing enterprises, early financial accounting fraud Sanyo Toshiba today generally shocked the world; Japan's Kobe Steel was exposed in October long-term product Fake manufacturing data hit the Japanese manufacturing industry hit hard.
Japan's past management style is not suitable for today's business environment.Japan is a century-old, investment and business model is the same for thousands of years, it is difficult to adapt to the current investment cycle shortened, shorter technical cycles, the market changes very fast . "Liu Junhong believes that the rise in various costs such as labor costs and land costs has also made it very difficult for Japanese companies to hold their market share. Once the capital turnover is not opened, the Japanese electronics industry collapses almost across the board.
Li Yi, director of the World Economic History Research Center of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, believes Japan still has technological advantages in high-tech manufacturing, such as the 'Invisible Champion' in some of the core components currently exposed by Japanese companies These problems are precisely in the throes of the transition. How the future development of Japanese manufacturing enterprises depends on the judgments made by the enterprises on the trends, and in light of the actual conditions of the enterprises, such as technological capabilities, human capital conditions, domestic and international market development capabilities, take corresponding measures to innovate , While Japanese companies may also face some differentiation on this issue.