IR News
December 14, 2006
Notice on Sale of Affiliated Company's Interests
Toshiba Corporation has decided to sell its entire interests in Toshiba-EMI Limited, an affiliated company of Toshiba Corporation. The overview of the transaction follows.
- Outline of transaction
(1) Shares sold
All Toshiba-EMI Limited shares currently held by Toshiba Corporation
(2)Entities to which the shares will be sold
EMI Group Plc and/or its group companies
(3)Transfer price and profit from sale (estimate)
Transfer price: About 21 billion yen
Profit from sale (pre-tax)
Non-consolidated: About 20 billion yen
Consolidated: About 13 billion yen
(4)Time line, etc.
Completion of the transaction is expected within the first half of fiscal year 2007.
- Reasons for transaction
Toshiba has been involved in the music content business through a partnership with EMI Group in Toshiba-EMI Limited. However, the music content business today is less relevant to other businesses within the Toshiba Group. Toshiba Corporation recently received an offer for its entire interests in Toshiba-EMI Limited from EMI Group Plc. After due consideration, and in light of the circumstances described above, Toshiba decided to accept this offer.
- Outlook for the current fiscal year
The transaction is expected to be completed in first half of FY2007 and therefore is expected to have no impact on Toshiba's business forecast for the current fiscal year FY2006, ended March 31, 2007.
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