Hisense acquires 95% of Toshiba Visual Solutions Corporation for 12.9 billion ye

Hisense acquires 95% of Toshiba Visual Solutions Corporation for 12.9 billion ye Author Topic: Hisense acquires 95% of Toshiba Visual Solutions Corporation for 12.9 billion ye  (Read 184 times)

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Chinese TV maker and electronics conglomerate Hisense will purchase 95% stock shares of Toshiba Visual Solutions Corporation ("TVS"), a wholly owned subsidiary of Toshiba Corporation for 12.9 billion Japanese Yen, or $114 million, with Toshiba retaining an 5% stock holding. Hisense will obtain the TVS businesses including production, research and development, and sales functions as well as license to use the Toshiba brand for a period of 40 years for visual solution partners operating in Europe, South East Asia and other markets.

TVS primarily operates in TV and variety of ancillary products, including commercial and advertisement display products. The TVS purchase also secures two factories in Japan and hundreds of talented Toshiba R&D employees as well as a significant IP portfolio relating to TV technology business patents for image quality and acoustics.

Mr. Liu Hongxin, the CEO of Hisense Group, said that Hisense would optimize TVS's resources on R&D, supply chain or global sales channels, cooperate with and support each other in display technology, provide competitive content operation services for smart TVs for the global market and accomplish fast growth in Japanese market.

With its 142-year rich history, Toshiba has a leading display technology in Japan with the brand ranked highly international global technology brand list's. A division stopped producing TVs early in 2015. The Brand recently returned to the European market with a couple of OLED TVs. However these are manufacturerd and sold by Turkish vendor Vestel.

Reportedly Toshiba still made 700000 TVs in or for its Japanese home market. The division had a negative book value, so Toshiba would be making a roughly $225 million gain in the sale.

According to the IHS, sales of Toshiba TV ranked No.3 in Japanese market in 2016 with the Hisense TV market share in Japan the highest among all non-Japanese brands. Collectively both brands' cumulative market share reaches over 20% after the transaction. Hisense's TV business in 2016 ranked third in the world (IHS) and has held NO.1 market share in China for 13 consecutive years.

The Official Television Sponsor of the FIFA World Cup Russia 2018, Hisense is poised to continue to expand and implement its global brand vision and strategy. With the benefit of this acquisition, Hisense says it will develop and enlarge its international strategy of TV business in R&D, branding and marketing by operating under multiple brands. The cooperation between Hisense and Toshiba will drive changes to the new picture of TV business.

Toshiba is shedding non-core assets, like the TV and display business and the White Goods business before that. To counter billions in losses and liabilities at US nuclear plant builder Westinghouse. Though small change compared to the tumultious sale of its NAND memory chip division, under pressure from lenders  it has decided to accept the $18 billion offer from a consortium led by Bain Capital with support from Dell, Seagate, Kingston South Korean chipmaker SK Hynix.

Western Digital has opposed all deals not involving it, Western Digital being the joint venture partner in the chip business. It teamed up with Foxconn. Leading to a nine month sales process.

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« Last Edit: Tue November 14, 2017, 06:46:36 PM by DCI forum »