The drawn out, drama filled sale of Toshiba’s prized memory business may finally be coming to a close as Reuters reports Toshiba has selected an $18 Billion (2 Trillion Yen) bid from a Bain Capital led group which includes a number of major corporations including Toshiba, Hoya, SK Hynix, Apple, Dell, Kingston, and Seagate.
The infusion of the cash is expected to provide Toshiba 740 Billion Yen after taxes, which will help prevent it from being de-listed from the Tokyo Stock Exchange. Toshiba had been in a massive amount of debt after major losses by their nuclear power business prompted a multi-billion USD write-off.
Despite Toshiba’s agreement to sell the business to the Bain Capital led group, the sale is still far from being complete. Western Digital, Toshiba’s joint venture partner in the development of NAND, is currently suing Toshiba in an International Court of Arbitration. According to Western Digital’s complaint, any sale of Toshiba’s memory business needs to be approved by Western Digital and given that Western Digital is also interested in purchasing Toshiba’s memory business, they will probably not be interested in losing the deal without a fight.
Source: Reuters
