Toshiba Aiming Sell Memory Business for $18 Billion to Consortium Led by Bain Capital
Bloomberg Technology reported today that financially strapped Toshiba Corporation of Japan has agreed to sell its memory business, Toshiba Memory Corporation, to a consortium led by U.S.-based Bain Capital for 2 trillion yen ($18 billion).
According to Bloomberg Technology:
“The Bain consortium includes backing from Japanese and overseas companies, including Toshiba, which will reinvest 350.5 billion yen, the company said in a statement. Apple Inc., Dell Inc., SK Hynix Inc. and Japan’s Hoya Corp., will provide financial support, according to people familiar with the situation. The iPhone maker played a crucial role in swinging momentum in the tumultuous auction to the Bain offer.
Apple is interested in the chip unit because of the strategic importance of flash memory. The compact chips are essential for its iPhones and iPods, storing every photo, video clip and animoji. Only a handful of companies make the highest-end technology and the dominant player is Samsung Electronics Co. The last thing Chief Executive Officer Tim Cook wants is to end up dependent on his archrival in smartphones, so he has a vested interest in ensuring Toshiba’s chips unit stays healthy.”
Toshiba is selling its memory business to cover billions of dollars in losses incurred by its U.S. nuclear business. It must raise the money by March 2018 in order to avoid being delisted from the Tokyo Stock Exchange. The company expects to close the deal by March 31, 2018, and is seeking to restore a positive net worth by the end of the fiscal year, according to a statement from Toshiba.
Toshiba will hold a shareholders meeting on October 24th in Chiba, Japan, to vote on the sale of Toshiba Memory Corporation to the Bain Capital consortium.
- September 2017: Toshiba Says it Will Sell Memory Business to Consortium Led by Bain Capital
- August 2017: Troubled Toshiba Said to be Close to Selling Memory-Chip Business (Updated)
- August 2017: Toshiba Reports $8.8 Billion Loss for Fiscal Year
- July 2017: Epson to Replace Toshiba on Tokyo Stock Exchange
- July 2017: Nikkei Demotes Toshiba on Tokyo Stock Exchange; Faces Delisting
- June 2017: Toshiba Sues Western Digital; Fails to Meet Self-Imposed Deadline to Sell Memory Business
- June 2017: Toshiba Being Sued for $399 Million for Accounting Irregularities
- June 2017: Western Digital Seeks to Block Toshiba’s Sale of Memory-Chip Business
- June 2017: Toshiba Determined to Sell Memory-Chip Business Despite Hurdles
- May 2017: Toshiba Not Reporting Audited Full-Year Financial Results at Shareholders’ Meeting
- April 2017: TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties