Economy

Toshiba Receive $22.3b Revised Bid For Chip Business

Toshiba Receive $22.3b Revised Bid For Chip Business”

Reports have emerged that Toshiba is desperate to sell the chip business, in light of the billions of dollars of liabilities associated with its USA nuclear unit endeavours.

The consortium led by Bain Capital has increased its bid for Toshiba Memory Corporation in the long-running auction of the Japanese conglomerate's memory chip and NAND flash storage business.

The consortium, which is also backed by Japanese state-backed investors is higher than its original offer, said to be around 1.94 trillion yen.

Bain and SK Hynix representatives were not immediately available for comment, while Toshiba declined to comment on details of the deal negotiations.

It comes after a rival group led by Western Digital, which enjoys 50/50 ownership of Toshiba Memory Corp factories in Japan, appeared to have taken pole position in the race to acquire the highly rated company.

It looks like Toshiba may have made a decision to sell its memory chip unit to a group led by Western Digital for about 2 trillion yen (US$18.29 billion), if claims in a report by Japan's Nikkan Kogyo newspaper is on the money.

Toshiba has for months been trying to hammer out a deal to sell TMC in order to help offset massive losses from its US nuclear power business.

Toshiba announced last week that it was considering three competing offers, inclusive of one led by Taiwanese Foxconn.

All three bidder groups have roped in Apple Inc to bolster their offers, sources have said.

US technology firms and other Japanese companies were also expected to provide funding, while major banks were expected to provide a total of around 600 billion yen in funds, the sources said.

Toshiba was still in discussions over the sale as of late Monday, 11 September, sources said.

Toshiba snarkily announced last month that it would go it alone in the financing of new equipment for its Fab 6 now under construction at its Yokkaichi Operations site in Mie prefecture over the firms' clash over Toshiba's right to sell its memory chip unit.



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