Western Digital to win Toshiba chip unit bidding war

Lloyd Doyle
September 13, 2017

The newspaper said Toshiba will announce the agreement on Wednesday and sign after a board meeting on September 20. Bain leads a tri-national consortium including South Korean chipmaker SK Hynix, The Innovation Network Corp. of Japan and the Development Bank of Japan.

A consortium containing Western Digital remains a top bidder but Toshiba and Apple have reportedly expressed concerns about the company possibly taking control of the chip unit rather than remaining an investor. Following the completion of the sale, the chief financial officer now owns 88,207 shares of the company's stock, valued at approximately $7,142,120.79.

As part of its $19 billion purchase of SanDisk, Western Digital inherited a partnership with Toshiba for NAND memory production.

Yoshimitsu Kobayashi, an external Toshiba director, said at a press conference on Tuesday at the Keizai Doyukai group of corporate executives, that though the deadline is important, it is also important that negotiations head in a good direction.

Toshiba said in a statement that its board of directors had "determined to continue negotiations with the Bain-led consortium", which had come up with a new proposal.

Toshiba is desperate to sell the unit to cover billions of dollars in liabilities at US nuclear unit Westinghouse. It would also be a remarkable victory for Western Digital, Toshiba's joint venture partner for its chip business, after relations with the Japanese firm frayed to point where other bidders were chosen first and the USA firm initiated legal action that threatened to derail any deal. Although reports earlier today suggested a deal had been arranged with Western Digital, an article from Reuters has revealed it is Bain's bid that's now being pushed through.

According to Reuters, the Bain bid would give the private equity firm 49.9 per cent of initial voting rights in the business, while Toshiba would retain a 40 per cent stake.

A breaking report out of Japan this evening states that Western Digital has won the bidding process to take over a portion of Toshiba Memory.

In a plan offered in late August, the Japan-U.S. The Japanese company is looking to finalize the deal at a board meeting next week.

Other reports by Iphone Fresh

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