Turkey’s Vestel launches exploratory talks to buy Toshiba TV unit

ISTANBUL

Turkish electronics and appliance maker Vestel announced on April 10 that it was beginning talks to purchase the television unit of Japan’s Toshiba Corp. following a report by Japan’s Nikkei, but said it was unclear whether the deal would be finalized at the current juncture.

Toshiba Corp. following a report by Japan’s Nikkei, but said it was unclear whether the deal would be finalized at the current juncture.

In a statement to the Istanbul bourse, Vestel said the talks had been launched under the strategy of strengthening its position in international markets.

Toshiba, which sold the first Japan-made color television in 1960, appears to want to sell its TV business, Nikkei reported April 8. 

Some foreign buyers are said to be showing interest in taking over the unit, people familiar with the matter told Nikkei. 

Potential bidders include Vestel and a few Chinese rivals, according to the report. 

In its statement, Vestel said it started talks to buy Toshiba’s TV unit, while adding that it was still unclear whether the talks would proceed into final negotiations. 

Vestel CEO Turan Erdoğan said the company continued to follow opportunities in line with its growth strategies in a press statement early April 10. 

Vestel’s shares rose over 4 percent following the news and company announcements. 

Meanwhile, Vestel announced a strategic brand license agreement on Sept. 1, 2016, with Toshiba Visual Solutions Corporation, a wholly owned subsidiary of Toshiba Corporation, centered on the production and sale of Toshiba-branded consumer TVs in the European market.

Vestel also stated on Sept. 2 that it had signed another deal to acquire stakes in Poland-based Compal Electronics Europe in a move to expand in Europe and realize its targets in line with the Toshiba agreement.