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Toshiba Spurns Western Digital, Signs Deal To Sell Memory Chip Unit To Group Led By Bain Capital

Toshiba Spurns Western Digital, Signs Deal To Sell Memory Chip Unit To Group Led By Bain Capital
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It’s been a trying process, hampered by legal interference and government pushback, but Toshiba Corp has finally committed to selling its memory chip unit.

The Japanese firm reportedly closed a ¥2 trillion ($18 billion) deal with an American group led by Bain Capital early Wednesday. The transaction includes Toshiba’s $3.1 billion investment in the unit, as well as stakes from Apple Inc. (NASDAQ: AAPL), Seagate Technology PLC (NASDAQ: STX), Dell Inc., Kingston Technology Company, Inc., Hoya Corp and SK Hynix Inc.

The arrangement was ultimately preferred to bids by KKR & Co. and two state-backed Japanese entities.

Toshiba intends to see the deal through in spite of expected legal objections from partner Western Digital Corp (NASDAQ: WDC), which claims veto power. The seller has sued Western Digital for $1 billion for its interference, and the battle is yet unresolved.

If it remains ongoing by the date of the deal’s closure, three joint ventures worth less than 5 percent of the unit will not be included in the Bain sale.

Shares of Western Digital were down more than 4 percent in pre-market trading.

Related Link:

Toshiba's Chips Are Past Their Sell-By Date, And Investors Are Buying American

Image: © Raimond Spekking, via Wikimedia Commons

Posted-In: Dell Inc. Hoya Corp Kingston Technology Semiconductor ChipsNews Asset Sales Legal Tech Best of Benzinga


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