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Fujifilm eyes purchase of Toshiba medical unit: sources

Kyodo

Fujifilm Holdings Corp. is interested in buying a medical equipment subsidiary of Toshiba Corp., which is restructuring group businesses amid an accounting scandal, sources close to the matter said Wednesday.

The Japanese electronics conglomerate has said it is considering the sale of Toshiba Medical Systems Corp., a manufacturer of diagnostic X-ray systems, radiation therapy systems and other medical equipment, as it tries to focus on semiconductor and nuclear power businesses.

Other companies that may bid for the Toshiba unit include General Electric Co. and U.S. investment fund Kohlberg Kravis Roberts & Co., the sources said.

Toshiba is hoping to pick a buyer by the end of next March and raise cash to help improve its financial standing, they said.

Toshiba Medical Systems posted sales of ¥405.6 billion ($3.4 billion) and an operating profit of ¥26.0 billion in the business year ended in March this year.

Fujifilm, a maker of digital cameras, industrial film products, cosmetics and medical equipment, is expanding its medical product business. Toshiba has already explained to Fujifilm about its plan to sell the subsidiary, according to the sources.

Toshiba is expecting a record group net loss of ¥550 billion for the current business year through March due to restructuring costs.