Fujitsu Prepares To Divest Non-Core AC Unit Worth $1.1B: Report

Author: Anusuya Lahiri | January 11, 2023 09:15am

• Fujitsu Ltd (OTC:FJTSF) (OTC:FJTSY) eyed a quick sale of its entire stake in air-conditioning manufacturing unit Fujitsu General Ltd to simplify its operations.
• The sale included parting with its Fujitsu General shares, worth ¥140 billion ($1.1 billion), Bloomberg reports.
• The CEO clarified not considering a partial divestment as it sheds non-core operations. 
• The Japanese IT firm disposed of much of its consumer product lineup to focus on communications and information technology systems for businesses.
• In an interview, CEO Takahito Tokita shared plans to sell its 42% stake.
• The report further notes that Fujitsu’s business now increasingly caters to a growing number of Japanese companies welcoming more digital workflows to keep up with technological shifts.
• When Fujitsu reported quarterly results in October, it shared possibilities of selling holdings in non-core affiliates, including Fujitsu General, battery manufacturer FDK Corp and Shinko Electric Co, Ltd (OTC:SHEGF). At the end of September, Fujitsu held about 59% of FDK and 50% of Shinko Electric.
• The report adds that Japan, home to many semiconductor production equipment and materials makers from Tokyo Electron Ltd (OTC:TOELF) (OTC:TOELY) to Shin-Etsu Chemical Co, Ltd (OTC:SHECF), faced pressure from the U.S. to help prevent chip technology from flowing into China.
• Tokita named the geopolitical strains over Taiwan and surging COVID-19 infections as the most significant risks making Fujitsu vulnerable.
• Price Action: FJTSF shares closed at $132.25 on Tuesday.
• Photo Via Company

Posted In: FJTSF FJTSY SHECF SHEGF TOELF TOELY