Toshiba announces sale MOU with Bain Capital, SK Hynix

Sep 15, 2017, 00:21
Toshiba announces sale MOU with Bain Capital, SK Hynix

'The sale of TMC must promote further growth of TMC's memory business, and return Toshiba group to positive equity. Among them is Western Digital, the USA computer data storage company and Toshiba's partner in chip manufacturing, which expressed its discontent with the news. Toshiba claimed it would try to reach a definitive agreement with the Bain-led group by month's end, but the company also noted the memorandum is non-binding, leaving the door open for other bidders.

Without an agreement soon, it will be hard for Toshiba to gain by the end of the financial year in March, regulatory approval and hence the funds it needs to cover billions in liabilities at it US nuclear unit. After initially identifying Bain as the preferred bidder in June, Toshiba said on August 31 that it was in talks with three bidding groups and was struggling to reach a "definitive agreement".

This comes after Toshiba switched its interest to Western Digital, Toshiba Memory Corp's 50/50 partner in the companies' manufacturing facilities in Japan, when earlier negotiations with Bain floundered on payment schedules and fears that a deal could be held up as a result of legal action from WD.

Western Digital calls itself an industry-leading provider of storage technologies and solutions that enable people to create, leverage, experience and preserve data.

Western Digital claimed it has been "flexible" and "constructive" and submitted numerous proposals to address Toshiba's concerns, and noted "multiple courts have ruled in favor of protecting SanDisk's contractual rights".

Toshiba said its business partner Western Digital had been "persistently" overstating its rights over a memory chip unit that the Japanese firm is looking to offload, showing the two remain at loggerheads over the $18 billion sale. The company sought injunctive relief after Toshiba announced in June that the Bain-led group was the preferred bidder and it planned to strike an agreement by June 28. Toshiba is appealing the order. The company is seeking to undo Toshiba's April 1 transfer of its NAND flash memory joint venture interests to the Toshiba Memory Corp. subsidiary and prevent any subsequent sale without SanDisk's consent.

The move came as the troubled Japanese electronics and machinery giant and Western Digital Corp., its existing flash memory business partner, remained apart over the USA hard disk drive maker's future involvement in the management of Toshiba Memory Corp. if it wins the bidding race.

YOU MIGHT ALSO LIKE
  • OPEC may extend cuts by more than three months

    OPEC may extend cuts by more than three months

    The near term action in oil prices will depend on how prolonged will be the impact of Hurricane Harvey on USA oil infrastructure. The countries will meet in November to decide whether the curbs need to be extended past their scheduled expiry in March.
    Nintendo will continue to ship SNES Classic Edition consoles into 2018

    Nintendo will continue to ship SNES Classic Edition consoles into 2018

    After discontinuing the product this spring, Nintendo has announced that it is bringing back the NES Classic Edition in 2018. Finally, Nintendo has heard our cries and confirmed that they would be re-releasing the #Nes Classic Edition in 2018.
    Hurricane Irma Has Left a Trail of Destruction

    Hurricane Irma Has Left a Trail of Destruction

    Tropical storm conditions are possible on the Treasure Coast throughout the day Monday with showers and possibly a thunderstorm. Emera's Tampa Electric utility reported 300,000 homes and businesses lost power by Monday morning.
  • Pakistan open to joint Afghan border patrols, says PM

    Pakistan open to joint Afghan border patrols, says PM

    As part of the new strategy for the war in Afghanistan, Trump said his government would take a tough position on Pakistan. Pakistan is rightly taking friendly countries' leadership into confidence in the wake of Trump statement.
    First Malay woman declared new president-elect of Singapore

    First Malay woman declared new president-elect of Singapore

    However, Yacob's selection was overshadowed by criticism that it was undemocratic to give her the top post without a vote. But she has seldom spoken publicly on the issue and there is little sign of change in official attitudes.
    United Kingdom  government increases support for victims of Irma

    United Kingdom government increases support for victims of Irma

    Foreign Secretary Boris Johnson is to fly to the Caribbean to visit the British territories devastated by Hurricane Irma . When it first hit Florida, it was still a Category 4 hurricane. "St.
  • Minecraft Now Available On New Nintendo 3DS

    Minecraft Now Available On New Nintendo 3DS

    It is available via the Nintendo eShop today and will launch physically at a later date. Minecraft is a game about placing blocks and going on adventures.
    Hope Hicks Replacing Scaramucci

    Hope Hicks Replacing Scaramucci

    Earlier this year, Hicks joined Jared Kushner and Ivanka Trump for Shabbat dinner at their Kalorama mansion, Politico reports . As long as Hicks doesn't give any "off the record" interviews with The New Yorker, she should have some better job security.
    Vandeweghe upsets Pliskova to reach last four at US Open

    Vandeweghe upsets Pliskova to reach last four at US Open

    Defending that constantly, I'm just going to really have to do everything really well. "The team works as hard as I do". There wasn't much to give, but Stephens earned it. "Just made so many errors at the end there". "I played pretty well".
  • Syria war: Dozens dead amid strikes on Deir Ezzor province, say reports

    Syria war: Dozens dead amid strikes on Deir Ezzor province, say reports

    The monitoring group said the US -led worldwide coalition, which is supporting non-government forces, was partly to blame. The convoy had been stuck in the desert following airstrikes by the U.S-led coalition to prevent its advance.
    Target to hire approximately 2500 seasonal workers in Colorado

    Target to hire approximately 2500 seasonal workers in Colorado

    As of this writing, William White did not hold a position in any of the aforementioned securities . This includes "fruits and veggies, Simply Balanced brand foods and C9 athletic gear".
    White House 'super focused' on tax reform, says Mnuchin

    White House 'super focused' on tax reform, says Mnuchin

    Most Democrats have said that any measures that benefit the rich are nonstarters and that they oppose tax cuts that add to the deficits.
popular