Fujifilm Holdings is raising doubts about the timing of Toshiba's sale of its Toshiba Medical Systems division to Canon, according to a report published March 16 by Reuters.
Specifically, Fuji, the parent company of Fujifilm Medical Systems, is raising doubts about whether Toshiba will be able to complete the sale in time for proceeds from the divestiture to be recognized in the company's current fiscal year, the Reuters article said. Toshiba is selling the division to generate cash in the wake of an accounting scandal that has crippled the company, and on March 9 it picked Canon as the exclusive suitor with which it would negotiate.
In a letter from Fuji management to Toshiba, Fuji noted that media reports have stated that profits from the sale would benefit Toshiba in its current fiscal year, which ends in March. But Fuji said that regulatory approvals for the deal will take at least a month to process, meaning the divestiture will mostly likely close after Toshiba's current fiscal year, according to the article.
The Reuters article went on to state that such a public challenge is rare in Japan, and that Fuji disclosed the contents of the letter to the media. Toshiba has declined to comment on the letter, the article said.
