Economy

Toshiba Said to Select Bain Group as Chip Buyer Over Western

Toshiba Said to Select Bain Group as Chip Buyer Over Western”

Meanwhile, Western Digital (NASDAQ:) said it would be commencing arbitration against Toshiba through its subsidiaries. The memory chip business is its crown jewel, which has attracted interest from major tech companies like Taiwan's Foxconn.

Toshiba said it signed an agreement to sell its semiconductor unit to a consortium led by private equity firm Bain Capital for about $18 billion, the latest twist in a months-long saga over the Japanese conglomerate's effort to sell its prized NAND flash business to offset massive losses incurred by its US nuclear power subsidiary.

Through a press release, Toshiba said it will sell all shares of Toshiba Memory Corporation to Pangea, a special objective acquisition company formed by a Bain-led consortium.

The bidding process had been plagued by fears in Japan that the valuable technology could end up under foreign control.

"Western Digital may come up with a new offer, and the intention of the Japanese government or creditors may also emerge as another variable", an industry insider said, claiming situations may change down the line. Then, Toshiba would invest around $3.1 billion to buy shares of the company, giving it some influence over the business and access to some profits.

Also, Innovation Network Corporation of Japan (INCJ) and Development Bank of Japan Inc.

Western Digital said in a statement Wednesday that it is not backing down because of Toshiba's announcement.

The agreement may not be the end of the saga, however.

The Bain group fended off a challenge from USA data storage firm Western Digital, whose subsidiary SanDisk has a joint venture with Toshiba.

Western Digital Corporation has sought to prevent the sale of the interests of the Joint Ventures to any third party, and the two parties are now engaged in litigation and arbitration.

The Western Digital statement read, in part, "It is troubling that Toshiba would pursue this transaction without SanDisk's consent, as the language in the relevant JV agreements is unambiguous, and courts have entered multiple rulings in favor of protecting SanDisk's contractual rights".

Upon completion of the transfer of TMC shares and required approvals/filings, including those to competition authorities, Toshiba will record an approximately 1,080 billion yen improvement in its FY2017 consolidated income (before tax).

Toshiba is selling the memory chip business get out from under a massive financial crisis threatening its very survival. The collapse of its US nuclear unit Westinghouse, which filed for bankruptcy earlier this year, cost the storied Japanese company some $6.4 billion.

The loss forced Toshiba to report a negative net worth for the fiscal year that ended in March.



Like this

Latest


22 September 2017
Europe appoints Matthew as captain for 2019 Solheim Cup
Don't let her easy, calm demeanour fool you - she is a hardened competitor at heart. She has won 22 points in her career, leaving her third on Europe's all-time list.

22 September 2017
Istanbul's Ataturk airport closed after jet crashes
The airport is slated to be closed down when a new airport, now under construction, goes into operation. Earlier, the private Dogan news agency had reported that the first pilot was killed in the accident.

22 September 2017
MI teacher allegedly stole $30K from homecoming dance sales
When the camp's repeated attempts to collect were unsuccessful they contacted officials with the Chippewa Valley school district. Johnson also oversaw ticket sales for the 2016 student and parent trip to Camp Tamarack, which was attended by 60 people.

22 September 2017
GOP Health Care Proposals Lack Even 'Common-Sense Rationale,' Obama Says
Obama also warned Wednesday that nationalist sentiments could stymie efforts to combat poverty and disease. In it he posed a question to demonstrate how much progress humanity has made.

22 September 2017
Infiniti performance electric vehicle to debut in Detroit
We don't know much else at this stage, but we do know that Infiniti is late to the party on this, like a lot of auto makers. Infiniti's last foray into full electrification was a concept revealed in 2012.

22 September 2017
Callon Petroleum Company (CPE)
Callon Petroleum Company ( CPE ) have shown a high EPS growth of -18.00% in the last 5 years and has earnings rose of 79.20% yoy. The rating scale runs from 1 to 5 with 5 indicating a Strong Sell, 1 indicating a Strong Buy and 3 indicating a Hold.

21 September 2017
Amazon will open huge NYC office at Manhattan West megaproject
Brewer said, "At the foundation of our city's success are well-paying jobs in Manhattan's transit-rich business districts". It's no HQ2, but the 2,000 local jobs Amazon will create while opening a west side hub are nothing to sneeze at.

21 September 2017
Coherent, Inc. (NASDAQ:COHR) Traded 13.4% Above Its 50 Day Moving Average
Finally, ValuEngine downgraded Coherent from a "buy" rating to a "hold" rating in a research report on Friday, September 1st. The value of the total investment in Coherent, Inc. increased from $870,000 to $954,000 a change of 9.7% quarter to quarter.

21 September 2017
Liam Neeson Stars in Action-Packed Thriller THE COMMUTER
The Picture Company's Andrew Rona and Alex Heineman produce with Serra and Ombra Films' Juan Sola executive producing. Lionsgate and StudioCanal have released a new trailer for the upcoming action thriller The Commuter .

21 September 2017
SC warns BCCI office-bearers of serious consequences
The CoA had asked the apex court to hand over the "governance, management and administration" of the BCCI to them. N Srinivasan's Tamil Nadu and Niranjan Shah's Saurashtra are believed to be leading that charge.



Recommended