Toshiba Refutes Recent Rumors Concerning Pending Sale of Memory-Chip Business
Toshiba Corporation of Tokyo, Japan, today addressed various speculative reports concerning the pending sale of its memory-chip business, Toshiba Memory Corporation, to a Bain Capital-led group for $18.6 billion (2 trillion yen).
The firm stated that multiple press reports on April 23 and 24 claim that Toshiba is considering cancelling sale of its Toshiba Memory Corporation if the proposed sale isn’t approved by China’s anti-monopoly regulator, and that if the approval isn’t received by the end of May 2018, the parties to the proposed deal will consider revising certain sale conditions, and then re-submit the proposal to Chinese authorities.
Toshiba states however that it still intends to close the sale “as soon as possible,” and hasn’t decided on any policies for alternatives, including cancelling the proposed sale.
The firm also said that it hadn’t announced that the deadline for Chinese authorities to decide on the deal is May 28, 2018.
Toshiba originally put Toshiba Memory Corporation up for sale when it needed cash to cover losses incurred by its U.S.-based Westinghouse nuclear-power business, but has since raised funds to cover those losses.
According to the Nikkei Asian Review this week, activist fund and Toshiba investor Argyle Street Management is seeking to stop the sale of Toshiba’s memory-chip business, arguing that it undervalues the memory-chip business.
In a letter, Kin Chan, chief investment officer for the Toshiba shareholder, is said to have urged Toshiba to reconsider its plans to sell Toshiba Memory Corporation, saying that the $18.6 billion sale price is too low.
Toshiba recently appointed Nobuaki Kurumatani, a former Sumitomo Mitsui banker, as its new CEO.
- April 2016: Toshiba Completes Sale of Westinghouse to Brookfield
- March 2018: Sale of Toshiba’s Memory Business Delayed
- January 2018: Toshiba Finds Buyer for Westinghouse Nuclear-Power Business
- November 2017: Toshiba Seeking to Sell TV Business to Chinese Company for $114 Million
- November 2017: Toshiba Reports Loss for Half, but Memory Business Records Strong Performance
- October 2017: Toshiba Revises Forecast, Expects Net Loss of Almost $1 Billion
- September 2017: Western Digital Seeks Injunction to Stop Sale of Toshiba’s Memory Business
- 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