Toshiba selling shares of Toshiba Tec?

Based on Toshiba Corporation’s apparent plan for a $6.3B write down for it’s U.S. nuclear unit, there have been reports that Toshiba Corp is considering selling shares in Toshiba Tec.  As a result, shares in Toshiba Tec Corp (6588.T) rose more than 6 percent in early March 13, 2017.  This large US nuclear unit write down will be the second relating to Toshiba’s stake in the US nuclear business, after it booked a goodwill impairment charge of $2.3B in 2016.   Toshiba Corp denied a Nikkei business daily report that it was looking to sell shares in Toshiba Tec, who owns a 50% share of the in the cash register market in Japan, to help cover a portion of the the large write down.

The Nikkei daily went on to say that Toshiba has selected an advisory firm to help find a buyer soon for Toshiba Tec and that the sale price for the entire 50.02 percent stake in Toshiba Tec would likely be around 100 billion yen ($870 million).

Also, according to the Nikkei daily report, Toshiba is in the middle of the process of selling a majority or all of its stake in the flagship memory chips unit, the world’s second-biggest NAND chip producer, which it values at about $13 billion.  Earlier, Toshiba sold almost all its stake in affiliate Toshiba Machine Co (6104.T) for $134 million to raise cash.

These issues have resulted in a delay in Toshiba Corporation’s earnings announcement which is a month late and was rescheduled for February 14, 2017 to allow time for American and Japanese auditing firms to investigate various reports.  With the whole matter related to the nuclear business write done still unresolved, Toshiba has started informing relevant parties that another delay looks likely.

Toshiba Corp. is expected to apply for a deadline extension Tuesday, likely seeking an additional month or so according to sources.

Although very different circumstances, we are reminded of Samsung’s Galaxy Note 7 exploding battery woes which forced them to sell interests in various Samsung companies including the sale of it’s printer business to HP.

Photizo’s Position

So, what impact, if any, does this have on Toshiba’s office printer/copier business?   It is far too early to tell at this point but Photizo will continue to monitor the situation at Toshiba, who continues to make smart investments in their printer business which Photizo expects to be reinforced by what we hear at Toshiba’s LEAD 2017 event in the first week of May 2017.  Photizo’s position is that at this point, Toshiba has denied that they are selling Toshiba Tec so let’s not jump to conclusions just yet.

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