Toshiba Memory in Talks on Investment from DBJ

Economy

Tokyo, Feb. 21 (Jiji Press)--Japanese chipmaker Toshiba Memory Corp. is in talks to receive up to 300 billion yen in investment from the government-backed Development Bank of Japan, informed sources said Thursday.

Toshiba Memory, which was spun off from Toshiba Corp. <6502>, intends to review its shareholder structure as it aims for an initial public offering on the Tokyo Stock Exchange in September, the sources said.

The chipmaker is also in talks to receive investment from INCJ Ltd., a government-backed Japanese investment fund.

Toshiba Memory aims to make a decision as early as next month to receive the capital injections from the DBJ and INCJ, the sources said.

For the investments, the DBJ and INCJ may directly buy preferred shares in Toshiba Memory that are held by such U.S. technology firms as Apple Inc. and Dell Inc., or Toshiba Memory may sell new shares to the DBJ and INCJ after buying back the preferred shares for cancellation, the sources said.

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Jiji Press