/

Toshiba agrees to sell white goods unit to China’s Midea for ¥53.7 billion

Kyodo

Toshiba Corp. said Wednesday it has agreed to sell an 80.1 percent stake in its home appliance unit to China’s Midea Group Co. for about ¥53.7 billion ($473 million) as the industrial conglomerate proceeds with restructuring following a massive accounting scandal.

Under the agreement, Toshiba will keep the remaining 19.9 percent stake in the Toshiba Lifestyle Products & Services Corp. unit and Midea will be licensed to use the Toshiba brand worldwide for 40 years.

Toshiba is expected to book a pre-tax profit of around ¥90 billion in the April-June quarter of fiscal 2016 following the planned sale.

Launched in 1968, consumer appliances maker Midea is has coveted Toshiba’s sales networks in other Asian countries.

Improper accounting practices that came to light last year have prompted Toshiba to make downward revisions totaling around ¥230 billion to its pre-tax earnings over nearly seven years and revamp its money-losing businesses in a bid to improve its books.

Earlier in the month, Toshiba announced its decision to sell Toshiba Medical Systems Corp., a medical equipment maker, to imaging company Canon Inc.