Toshiba Determined to Sell Memory-Chip Business Despite Hurdles

Signage for Toshiba Corp. is displayed atop the company’s headquarters in Tokyo, Japan, on Wednesday, May 13, 2015. An accounting probe of Toshiba’s infrastructure and energy projects caused its default risk to jump the most in Japan, just as the creditworthiness of Sharp Corp. and Sony Corp. had been improving. Photographer: Akio Kon/Bloomberg

On June 2nd, financially troubled Toshiba Corporation of Japan reported that it will narrow-down the list of companies interested in purchasing its memory-chip business, Toshiba Memory Corporation, by mid-June, and that it will seek to close a definitive agreement by June 28th, the date of a scheduled Toshiba shareholders’ meeting.

Toshiba Memory Corporation is joint venture between Toshiba and SanDisk LLC of Japan, with Toshiba owning the majority of Toshiba Memory Corporation. Toshiba split off TMC as a wholly owned subsidiary on April 1, 2017. It says “multiple parties” are interested in the memory business (both Apple and Foxconn are rumored to be seeking to purchase the business). Toshiba says its sale of the business won’t “in anyway” affect its agreements with SanDisk; however, it says that Western Digital Corporation, which became the parent company of SanDisk last year, has “objected to and subsequently interfered with the progress of the bid process.” It says Western Digital has contacted bidders and threatened legal action – actions Toshiba calls “unwarranted interference.”

It says it will continue sale discussions with interested parties “as planned.”

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