Toshiba Refutes Recent Rumors Concerning Pending Sale of Memory-Chip Business

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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.

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