Xerox to Sell Partial Stake in Fuji Xerox for $1.3-Bil

STAMFORD, CT-In a deal the company says signals significant progress in its turn-around efforts, Xerox Corp., announces that it will sell half of its interest in Fuji Xerox Co. Ltd. to Fuji Photo Film Co. Ltd. As previously reported by GlobeSt.com, the company has already sold some of its properties and holdings, raising concerns that its headquarters here and other properties were threatened.

Xerox officials state that it will sell half of its stake in Fuji Xerox for 160 billion yen in cash, equivalent to more than $1.3 billion in US currency based on recent exchange rates. The sale will decrease Xerox’s interest in the company from 50% to 25%. Fuji’s ownership interest will be 75% once the deal closes at the end of this month. The agreement will result in an after-tax book gain of approximately $310 million, company officials state.

Company officials note that Xerox has now raised almost $2 billion in asset dispositions since December 2000 when it completed the sale of Xerox (China) Ltd., and Xerox (Hong Kong) Ltd., to Fuji Xerox for $550 million in cash. Last October, Xerox announced a turn around plan that included the sale of assets generating $2 billion to $4 billion; cost reductions exceeding $1 billion, and a sharpened focus on its strategic core businesses.