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Monday, April 26, 2010
Toshiba To Sell Stake In Flat Panel Display To AU Optronics


Toshiba Corp. said Monday it has signed a contract to sell its overseas liquid crystal display panel manufacturing unit to Taiwan's AU Optronics Corp., the last stage in its plan to discontinue overseas production of LCD panels.

Toshiba will transfer to AUO all shares in its wholly owned subsidiary AFPD PTE., LTD. (AFPD), a manufacturer of LCD displays for PCs. The agreement follows on from a memorandum of understanding (MOU) signed by the companies at the end of March, 2010. Under the terms of the definitive agreement, TMD plans to transfer all shares of AFPD to AUO on July 1, 2010.

TMD will concentrate management resources on its manufacturing facilities in Japan, the company said. These produce displays for mobile devices, including mobiles phones and smartphones, and for automotive applications, such as car navigation. TMD will also continue to implement restructuring initiatives to return its LCD business to the path of sustained growth with profit.

The Japanese electronics maker said it expects to book a Y16 billion special loss in the fiscal year ended March due to the sale, but said it will not change its earnings forecast as a result.


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