Toshiba is to sell Swiss smart meter firm Landis+Gyr in an initial public offering (IPO) on the Swiss stock exchange. à‚
In an effort to recoup revenues lost through the bankruptcy of its Westinghouse nuclear unit in the US, Toshiba aims to raise around Y2bn ($1.8bn) with the sale of its 60 per cent stake in Landis+Gyr plus the 40 per cent stake held by the Innovation Corporation Network of Japan (ICNJ). à‚
The IPO is expected to take place in September, and in the meantime Toshiba has said it will continue to pursue outright sale of the smart meter firm. à‚ While a $2bn bid from Hitachi and the UK’s CVC Capital Partners has reportedly fallen through, Goldman Sachs and Canada’s Onex Corp are still said to be in the running. à‚ à‚
Landis+Gyr, which was acquired by Toshiba for $2.3bn in 2011, is one of the leading smart meter suppliers in the US and is now targeting expansion in the European market, where 80 per cent of households are expected to have smart meters by 2020. The company last week made a European move, signing an agreement to operate Finnish DSO Caruna’s 650,000 residential meters from 2018. à‚ à‚ à‚
The firm is also looking into Asian opportunities, as evidenced by February’s deal with India’s Tata Power under which Landis+Gyr will supply two million smart meters in Delhi.
In separataing from Toshiba, Landis+Gyr said the split will give it more freedom to pursue a global business strategy.à‚