– Japan’s Toshiba expects a net annual loss of 110 billion yen ($968 million) in connection with the tax consequences of the sale of the semiconductor business group of international investors led by the American private equity Fund Bain Capital for 2 trillion yen.
As stated in the press release, previously it was assumed that the annual net profit will amount to 230 billion yen. However, the assessment of operating profit and revenue for the current fiscal year ending March 31, 2018, remains unchanged. Annual revenue is expected to be of 4.97 trillion yen, operating profit of 430 billion yen.
As expected, the Toshiba shareholders approve the transaction at the General meeting on 24 October.
In a consortium led by Bain Capital, also includes Apple, Dell, SK Hynix and Hoya, while Toshiba will retain a stake in the company. Following the transaction, own capital Toshiba will increase by 1.08 trillion yen. Deficit equity at 31 March of the current year exceeded 580 billion yen.
Toshiba continues recovery after major writedowns of its U.S. nuclear “daughter” Westinghouse and the scandal with the false reporting. Earlier in October, the Tokyo stock exchange removed the company from the list of candidates for delisting.
Toshiba shares on Monday fell by 2.1% in trading in Tokyo on Monday.