Toshiba Considers US$4-Billion Sale of Elevator Company

Toshiba Corp. is considering the sale of its elevator manufacturing business, and major companies, including global OEMs, are showing interest in taking over the Japan-based lift division, Bloomberg reports. KONE, a 19.9% holder of Toshiba’s elevator business, has shown strong interest in taking over the rest of the company, but, worldwide, Otis has also expressed interest in a takeover. Others showing strong interest are TK Elevator (TKE) and interest German-based owners, Advent International and Cinven, and Chinese conglomerate Midea Group Co. Toshiba could accept about US$4 billion in a sale of the elevator company, witnesses say, though consideration is at an early stage. Toshiba has yet to release a formal sale process, but shareholders will vote March 24 on an overall Toshiba proposal to split into two companies, with one selling non-core assets including the elevator operations. Toshiba aims to reach final agreement on the sale by March 2023. KONE said only that it follows the business and developments closely, without further comment. Otis said it is aware of Toshiba’s recent announcement, and does not comment on potential transactions, while Midea and TKE declined immediate comment.