tech

Toshiba completes $18 bil sale of chip unit to Bain consortium

4 Comments

Toshiba Corp said on Friday it had completed the $18 billion sale of its chip unit to a consortium led by U.S. private equity firm Bain Capital.

The completion of the deal, initially aimed for by end-March, had been delayed due to a prolonged review by Chinese antitrust authorities. China approved the deal last month.

The Bain consortium last year won a long and highly contentious battle for Toshiba Memory, the world's No. 2 producer of NAND chips. Toshiba put the business up for sale after billions of dollars in cost overruns at its Westinghouse nuclear unit had plunged it into crisis.

The consortium includes South Korean chipmaker SK Hynix , Apple Inc, Dell Technologies, Seagate Technology and Kingston Technology.

Under the deal with Bain, Toshiba repurchased 40 percent of the unit, it said in a statement.

© (c) Copyright Thomson Reuters 2018.

©2018 GPlusMedia Inc.

4 Comments
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Ah, the trouble you get into when trying to deal with US corporations. Perhaps the Japan government should introduce a law forbidding Japanese companies to buy US ones, or at least put a tariff on it.

-2 ( +1 / -3 )

@albaleo

Bain Capital is a just front end cover for SK Hynix, which wanted to acquire Toshiba outright but faced Japanese political opposition to anything Korean.

Bain Capital has an option contract to sell all of its Toshiba Memory shares to SK Hynix at a future date, at that point SK Hynix gains full control of Toshiba Memory.

0 ( +1 / -1 )

"at a future date, at that point SK Hynix gains full control of Toshiba Memory."

Did you understand the article at all?!

Firstly:

"The consortium includes South Korean chipmaker SK Hynix , Apple Inc, Dell Technologies, Seagate Technology and Kingston Technology."

There are 4 other non-Korean companies in the mix, yer no?!

Secondly:

"Under the deal with Bain, Toshiba repurchased 40 percent of the unit, it said in a statement."

Therefore Bain can sell it's shares and SK will still not own the majority of the shares, unless the other 4 decide to sell as well.

-1 ( +0 / -1 )

@Samit,

My sarcastic comment was related to Toshiba's purchase of Westinghouse. When I wrote it, I was trying to think of any successful purchase of a US company by a Japanese one. While I'm sure there are many, I couldn't think of any at the time.

0 ( +1 / -1 )

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