Japan Camp to Hold Majority Stake in Toshiba Memory (News)
Tokyo, Sept. 21 (Jiji Press)—Toshiba Corp. told its main creditor banks in a meeting Thursday that a majority stake in its flash memory unit will be held by Japanese companies after the sale of the lucrative business to a consortium led by US private equity fund Bain Capital.
The Japanese electronics and plant marker explained that the Japanese camp, including Toshiba itself, is set to hold a 50.1% stake in Toshiba Memory Corp. This enables control of the management of the unit after the sale to the consortium, also joined by a South Korean firm, sources with access to the meeting said.
Toshiba told that the consortium will pay ¥2 trillion for Toshiba Memory through a special purpose company and invest ¥400 billion in research and development projects.
Bain Capital is slated to hold a 49.9% stake in Toshiba Memory in terms of voting rights, while Toshiba is planning to invest ¥350.5 billion to acquire a 40.1% stake, it added.
Furthermore, Toshiba noted it has created a scheme in which the government-affiliated Innovation Network Corp. of Japan can play a part in the management of Toshiba Memory immediately after the sale.[Copyright The Jiji Press, Ltd.]