Fujifilm Holdings is tipped as a main contender for a medical equipment subsidiary of Toshiba increasing the likelihood of a bidding war for the unit.
Sony, General Electric Co., Hitachi, Canon and U.S. investment fund Kohlberg Kravis Roberts & Co., could also be potential buyers of Toshiba Medical Systems according to Nikkei Asian Review.
Toshiba is preparing to sell part of Toshiba Medical Systems Corporation (TMSC) a manufacturer of medical diagnostic imaging systems, nuclear medicine, MRI systems and medical information systems, to recoup record losses following restructuring last year.
TMSC is the leader in Japan for diagnostic imaging products holding a 30% market share. Globally it ranks fourth with 10 percent of the market. In 2014 it recorded sales of 405.6 billion yen (3.37 billion dollars) and is valued at an estimated 500 billion yen.
Preparations are starting for an auction of the subsidiary set for next month. The first round will take place in early February with key contenders moving on to final bidding before a buyer is chosen in March.
Tipped as the main contender, Fujifilm Holdings records pharmaceuticals and medical equipment line sales of 400 billion yen annually.
TMSC said that the sale will support growth of the unit in a 'rapidly changing' sector.
“We are planning to move forward without delay to execute our further growth strategies,” Toshio Takiguchi, President and Chief Executive Officer of Toshiba Medical Systems Corporation said in his New Year message.
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Source: Nikkei Asian Review
Toshiba Medical Systems Corporation
Toshiba Medical Systems European Association
The Japan Times
Image Credit: Toshiba