Toshiba Corp (www.toshiba.co.jp), a diversified Japanese manufacturer of electronic and electrical products spanning information and communications systems, power systems, social infrastructure systems and household appliances, is selling a 13.3 percent share of Toshiba Machine Co. Ltd (www.toshiba-machine.co.jp) for an estimated $173 million.
The sale is for 22.24 million shares of stock and will reduce Toshiba’s holding in Toshiba Machine from 33.4 percent to 20.1 percent. The sale will be a block trade and the estimated $173 million selling price is based on the average closing price of the stock during August 2007.
Toshiba is selling the stock to improve its cash operations and expects its relationship with Toshiba Machine to remain unchanged after the sale. Toshiba will not amend its consolidated or non-consolidated business forecasts for the fiscal year to March 2008 at this time.
Toshiba Machine has a current market value of approximately $1.2 billion and said it would buy back up to $73.6 million of its own stock to lessen any downward pressure on the stock from the Toshiba sale. Prior to the sale announcement Toshiba stock closed up 0.9 percent at 1,019 yen while Toshiba Machine stock rose 3.5 percent to 870 yen.
The sale is expected to be completed by the end of September, 2007.