Western Digital Seeks Injunction to Stop Sale of Toshiba’s Memory Business
Although Toshiba Corporation’s shareholders are scheduled next month to vote on the $18 billion (2 trillion yen) sale of its memory business, Toshiba Memory Corporation, to a consortium led by Bain Capital, in order to shore up its flagging finances, its U.S.-based partner in the memory business, Western Digital, is seeking to block the sale with an injunction.
Toshiba Corporation of Tokyo, Japan, is also said to have told its main banks this week that Apple, a member of the Bain consortium, had not yet agreed to the terms of the proposed sale.
Western Digital is seeking an injunction to stop the sale with the International Court of Arbitration, where it also had initiated proceedings against Toshiba Corporation earlier this year when Toshiba had first raised its proposal to sell Toshiba Memory Corporation..
Toshiba has been seeking to cover billions of dollars in order to cover losses incurred by its U.S. nuclear unit, Westinghouse. If it doesn’t cover those losses before the end of its financial year in March 2018, it could be delisted from the Tokyo Stock Exchange.
Western Digital is said to be strongly opposed to the sale of the memory business to the Bain consortium, as the Bain consortium includes SK Hynix, a rival maker of memory-chips.
As we’ve noted previously, Toshiba America Business Systems (TABS),,while a member of the Toshiba Group of companies, is independent both financially and operationally from Toshiba Corporation.
- 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