- Toshiba (OTCPK:TOSBF, OTCPK:TOSYY) releases official details about the sale of its chip unit to the Bain-led consortium.
- Toshiba will sell all shares of Toshiba Memory Corporation to K.K. Pangea, a special purpose entity containing Bain and its affiliates, and will invest about $3.1B into Pangea.
- Notably, the government-backed Innovation Network Corporation of Japan and Development Bank of Japan aren’t currently involved in the agreement but both “have expressed their interest in investing in Pangea or TMC at a later time.”
- Toshiba hopes to complete the sale before March since that’s the deadline for covering losses or facing Tokyo delisting. When the sale completes, Toshiba will record a $9.5B improvement to its pre-tax FY17 consolidated income.
- In other Toshiba news, the company plans to continue alone with its Fab 6 plans despite Western Digital 's (NYSE:WDC) request for arbitration. Toshiba says Phase 1 of the fab will complete next summer and that the fab "will be a unilateral investment by Toshiba following SanDisk's unwillingness to agree to reasonable commercial terms."
- Western Digital shares are down 0.46% aftermarket.
- Previously: Western Digital files arbitration against Toshiba's Fab 6 plans (Sept. 20)
- Previously: Toshiba sets meeting to OK sale of chip unit to Bain/SK Hynix (Sept. 21)
- Previously: Toshiba roundup: bid winner snag, WDC response, NAND market impact (Sept. 21)
- Now read: IBM (NYSE:IBM) The Hard Way
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