Meanwhile, Toshiba's television subsidiary had posted an operating loss of $54 Million in the previous fiscal year. Toshiba will keep a 5 percent stake.
Toshiba is also selling its chip business to a multinational consortium consisting of Innovation Network Corporation of Japan, Bain Capital Private Equity LP and Development Bank of Japan, but its USA joint venture partner Western Digital has turned to a San Francisco court to try and block the sale.
TVS will acquire a worldwide license to use the Toshiba brand in connection with its visual solutions products and services for a period of 40 years, including in connection with existing TVS business partners in Europe (namely Vestel) and SE Asia. "In these circumstances, it has become hard for Toshiba itself to further invest its management resources and execute measures to strengthen the competitiveness of the Visual Products business".
Accordingly, it determined that the best way to strengthen the business is "to transfer it to Hisense".
Hisense President Liu Hongxin said that after the deal, Hisense will devote more resources to improving research and development, its supply chain and sales channels to boost the market share of Toshiba Visual Solutions. The deal features the sale of 95% stake of Toshiba Visual Solutions to Hisense, at a valuation of more than $113 Million.
If the sale goes through by March 31, 2018, then the company expects to record a profit of approximately 25 billion yen before tax by eradicating TVS' negative 11.7 billion yen position on the balance sheet.
After months of wrangling with competing bidders, Toshiba said in September it had formally signed an agreement to sell the chip unit for JPY 2 trillion to a consortium led by United States investor Bain Capital, which included U.S. tech giants Apple and Dell as well as South Korean chipmaker SK Hynix.
The costly endeavor is still causing Toshiba pain, with the sale of its prized memory-chip business, PC business, the television unit, appliances, and a massive restructure underway.
Toshiba is struggling hard after its United States nuclear department filed for bankruptcy in March.