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.
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