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Toshiba Laptops Business Sold For Peanuts

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Toshiba Corp. signed a deal with Sharp Corp. to sell its laptops and tablets business. As per the agreement 80.1 percent of outstanding shares of Toshiba Client Solutions Co. Ltd will be sold to a subsidiary of Sharp for 4 billion yen or $36 million.

Both the companies expect no impact on their earnings. The transfer of 3,524,400 shares would be completed on October 1.

Toshiba said it will continue to provide brand licensing for PC products and equipment designed, manufactured and sold by Toshiba Client Solutions.

For the full year 2018, Toshiba expects to record a loss from the sale of around 1.7 billion yen.

Toshiba, with a history of 145 years, has been in trouble. On April, 2018 Nobuaki Kurumatani was appointed Chairman and Chief Executive Officer of Toshiba Corp.

The Japanese conglomerate reported fiscal year 2017 net income attributable to shareholders of 804 billion Japanese yen or $7.59 billion, compared to last year's loss of 965.7 billion yen. Earnings per share were 162.89 yen or $1.54, compared to loss of 228.08 yen a year ago. Net sales declined to 3.95 trillion yen from 4.04 trillion yen last year.

Recently, China has approved U.S. private-equity firm Bain Capital's $18 billion deal to acquire Toshiba Corp.'s memory-chip unit.

Sharp, that has not been in PC business for the last several years, is aiming for a big turn around using Toshiba's assets in its fold.

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