Toshiba 2012 Annual Report Download - page 131

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61
TOSHIBA Annual Report 2012
On May 19, 2011 (Japan Standard Time), the Company entered into a definitive agreement to acquire the entire shares of
L+G, and consequently acquired L+G for approximately $2.3 billion on July 29, 2011 (Greenwich Time).
The Company also entered into a shareholders' agreement and a share purchase agreement with Innovation Network
Corporation of Japan (“INCJ”). The agreements prescribe INCJ's participation to invest in L+G. The Company transferred
all shares in L+G and a part of receivables ($1.7 billion in total) to a Special Purpose Entity (“SPE”) established in
Switzerland for the purpose of managing L+G, and sold 40% of share in the SPE ($680 million in total) to INCJ on August
22, 2011 (Japan Standard Time).
L+G is a leading provider of smart meter, significant component for constructing smart grid, with having over 8,000
utility customers and strong sales network around the world. L+G provides a wide range of smart meter solutions, from
advanced interactive communication technologies to various applications and services based on data collected from the
meters. This transaction will allow the Company to provide the sophisticated one-stop solutions that offers optimum
power management and effective applications based on cloud computing technologies by the combination of L+G's
extensive customer networks, advanced services and technologies, with the Company's comprehensive expertise in
energy management for utility companies such as power companies and the energy consumers in corporate buildings
and household sectors. The Group positions the Smart Community business as a new focus area and is determined to
maximize its presence and capabilities in the market. Upon completion of the acquisition, the Company will promote
these synergies through alliances, centering on cloud computing and solutions services, and aim to expand its global
operations and to grow the Smart Community business.
Operating results of L+G are included in the Company's consolidated statement of income from the acquisition date.
L+G's net sales included in the Company's consolidated statement of income for the year ended March 31, 2012 was
¥80,982 million ($987,585 thousand).
The Company is in the process of allocating the purchase price to the assets acquired and liabilities assumed in
accordance with ASC No.805, but the process has not been finalized.