Toshiba sells 80% of Toshiba Client Solutions PC business to Sharp

Toshiba has announced that it will transfer 80.1 percent of the outstanding shares of Toshiba Client Solutions (TCS), a subsidiary in the PC business, to Sharp. Toshiba and Sharp have signed a share purchase agreement that anticipates completion of all necessary procedures, including government approvals and the transfer of the stock, by 1 October 2018.

After the share transfer is closed, Toshiba will be deconsolidated from Toshiba Group. Following the share transfer, Toshiba will continue to provide brand liensing for PC products and equipment designated, manufactured and sold by TCS. 

The agreement also covers the transfer to Sharp of certain Toshiba subsidiaries engaged in the PC business. Toshiba Information Equipment, Toshiba Client Solutions Canada, and Toshiba Client Solutions ANZ shares will be transferred from Toshiba Group to TCS. PC-related operations at Toshiba America Information Systems, Toshiba Europe and Toshiba Singapore will be transferred to new subsidiaries that TCS will establish, and all subsidiaries of TCS, including Tama Toshiba Information Equipments will become Sharp affiliates as a result of the transaction.

If the share transfer is completed within the year ending March 2019, Toshiba expects to record a loss from the sale of JPY 1.7 billion for its FY 2018 consolidated results.