Apple in play as Toshiba misses sale deadline

Apple in play as Toshiba misses sale deadline

Business news |
By Peter Clarke

The three consortia are:

Bain Capital Private Equity LP, SK Hynix, Innovation Network Corporation of Japan (INCJ) and the Development Bank of Japan;

a consortium based around Western Digital;

and one that includes Hon Hai Precision Industries, otherwise known as Foxconn.

According to a Japan Times report Apple has recently joined the Bain/INCJ consortium allowing the group to make a last-minute bid of around 2 trillion yen (about $18 billion) for TMC.

In a statement Toshiba said it had made its best effort to reach a mutually satisfactory definitive agreement with one of the consortia but that the negotiation with each of the consortia had not progressed sufficiently to allow Toshiba’s board to make a decision.

In June 2017 Toshiba announced the Bain Capital led Japan-U.S.-South Korean consortium was the preferred bidder for Toshiba Memory Corp. (Toshiba backs Japanese group for memory business sale) but later switched to a Western Digital led bid.

Western Digital, a joint venture partner with Toshiba on the production and sale of NAND flash memory, had raised objections over Toshiba’s moves to sell the semiconductor business without its permission and without giving it first refusal on a purchase. In the last few days relations between Toshiba and Western Digital have improved according to local reports.

Toshiba decided to sell off its profitable semiconductor business back in February 2017 after an extreme need for capital was exposed by write downs in excess of $6 billion in its US nuclear power business. Previously an accounting scandal had plunged Toshiba into retreat in 2015 (see Toshiba CEO resigns over accounting scandal).

Toshiba said in the statement that it would continue to negotiate with possible bidders and try to reach a deal at the earliers possible date.

Related links and articles:

Japan Times report

News articles:

Toshiba backs Japanese group for memory business sale

Western Digital seeks injunction to stop Toshiba sale

Toshiba mulls sell off of all of chip business

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