Japanese electronics conglomerate Toshiba Corporation, which has been hit by accounting irregularities and serious losses in its nuclear business, has announced it is selling its stake in its medical equipment leasing company to Canon Inc. for 3.14 billion yen.
In a regulatory announcement, Toshiba said it had been in talks about a possible deal since the end of last year.
It has now agreed to sell its 65% stake in Toshiba Medical Finance (TMF) to Canon, a Japanese printer, camera and electronics company, with the transaction taking effect on 31 March.
TMF, which will become a wholly-owned subsidiary of Canon, made an operating profit of 456 million yen for the year ending March 2016, recording net sales of 15,259 million yen and a net income of 287 million yen.
Canon said in a statement that the move formed part of its five-year initiative for strategic transformation, which it launched in 2016.
The plan includes developing Canon’s healthcare business as a next-generation pillar of growth. The company said that following the TMF acquisition it plans to accelerate growth of its medical equipment business, building a collaborative organization that includes a leasing function.