Toshiba Inks Deal to Sell Prized Chip Unit to Bain-Led Group (News)
Tokyo, Sept. 28 (Jiji Press)—Toshiba Corp. said Thursday that it signed a deal the same day to sell its prized flash memory unit to a Japanese-US-South Korean team led by US private equity fund Bain Capital for ¥2 trillion, paving the way for rebuilding its tattered finances reflecting huge losses from its nuclear business in the United States.
The contract was finally completed following many twists and turns, after the struggling Japanese electronics and machinery giant announced its initial target of reaching a deal by its general shareholder meeting on June 28 this year.
Toshiba plans to complete procedures on the sale of Toshiba Memory Corp., including antitrust screenings in related countries, by the March 31, 2018, end of fiscal 2017.
By using proceeds from the sale, Toshiba hopes to avoid seeing its debts exceed its assets for two years in a row as of the end of the current fiscal year. Negative net worth for the second straight year would lead to the delisting of the firm's shares from the Tokyo Stock Exchange. Toshiba was demoted to the TSE's second section from the first section last month.
According to Toshiba's announcement on Thursday, all shares in the chip subsidiary will be sold to the consortium, also including South Korean chipmaker SK Hynix Inc., US technology firms Apple Inc. and Dell Inc., Japanese precision instruments maker Hoya Corp. and Toshiba itself.[Copyright The Jiji Press, Ltd.]