Toshiba denies talks to sell PC business

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Toshiba is not discussing selling its personal computers business with anyone, the Japanese giant confirmed on Friday. Reuters is reporting the company is denying reports it is negotiating with Taiwan’s Asustek Computer Inc.

It was also said that China’s Lenovo Group also said it was interested in buying the PC unit.

According to Reuters, Toshiba previously said it was looking to sell its PC business as it tries to save itself from being delisted from the Tokyo Stock Exchange. It is currently cash-strapped after the bankruptcy of its US nuclear unit, and it is trying to improve its balance sheet by the end of March.

The PC business accounts for 3.5 per cent of Toshiba’s net revenue, racking up $747 million.

For the same reasons Toshiba sold its chip unit, Toshiba Memory, to Bain Capital for $18 billion.

However, the auction process wasn’t seamless, and the delays that occurred mean Toshiba may not obtain the necessary anti-trust clearance by the end of March. This could result in Toshiba ending the year in negative net worth, for the second consecutive year.

It was also said that Toshiba is looking to raise $5.3 billion by offering new shares in a third-party allotment.

Both Asustek and Lenovo are yet to comment on the matter.

Edit:

Toshiba has released an official statement regarding these news, saying not only is it not in talks with any company - it is not even considering selling the business.

"Reports that Toshiba has decided to sell off the business are not grounded in fact, nor is it in discussion with any individual company", the statement reads.

Image Credit: Toshiba