Report: Toshiba could sell entire medical unit for more than $3.5 billion

Toshiba is attempting to sell its entire medical equipment unit, Toshiba Medical Systems Corp., and it may sell for even more than the previous estimate of $3.5 billion, according to a new report from Reuters.

“People familiar with the sale process said a price tag between 400 billion yen to 500 billion yen ($3.5 billion to $4.4 billion) was a reasonable value for the unit,” the Reuters story read. “But one person said the deal value could go as high as 650 billion yen amid strong demand for medical businesses with high growth prospects.”

KKR & Co, Canon, Fujifilm Holdings Corp, and Konica Minolta are all listed as companies shortlisted for the second round of bidding.

Back in December 2015, a report from The Yomiuri Shimbun said Fujifilm Holdings was “the likeliest” candidate to purchase Toshiba Medical Systems Corp., but a final decision was not expected until this month.

Last year, Toshiba admitted it had overstated its profits by nearly $2 billion over the last seven years. A change in management was made as a result, and more than 10,000 job cuts have been announced.