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Toshiba picks Japanese-led consortium as preferred bidder in sale of memory business

By Kenny Yeo - on 22 Jun 2017, 10:36am

Toshiba picks Japanese-led consortium as preferred bidder in sale of memory business

(Image source: Reuters)

After weeks of back and forth among suitors, Toshiba has finally announced their decision to sell their NAND memory business to a Japanese-led consortium.

The consortium consists of Innovation Network Corporation, a state-backed investment fund; Bain Capital, an American investment firm; and the Development Bank of Japan.

Terms of the deal were not disclosed, but analysts have estimated the deal to be worth about US$20 billion.

This would go a long way in helping Toshiba whose American nuclear power division, Westinghouse Electric, has suffered crippling losses and has since filed for bankruptcy.

Toshiba hopes to conclude the deal soon, but they will face opposition in the form of Western Digital, who owns part of a Toshiba memory factory in Japan.

Western Digital, who has also made a bid for Toshiba's memory business, says that it should have a say in any deal. It has asked a California state court to block any sale and is also pursuing arbitration in the Paris-based International Court of Arbitration.

Toshiba picked the Japanese-led consortium because it believes that they have presented the best proposal in terms of price and promises to retain employees. Toshiba was also keen to keep sensitive technology and trade secrets within the country.

Other bidders include SK Hynix, Broadcom, and iPhone supplier Foxconn.

Source: The New York Times