June 1, 2018
The OEM has finally completed the long-anticipated $18 billion (€15.4 billion) sale of its memory chip unit to a Bain Group-led consortium.
As Reuters reports, Toshiba Corp has managed to complete the sale of its chip unit “to a consortium led by U.S. private equity firm Bain Capital.”
Toshiba first put the chip unit up for sale in order to recoup massive losses suffered as a result of the bankruptcy of its US-located nuclear unit, which “plunged it into crisis.” However, the process of finding a suitable buyer was fraught with difficulty, in part due to objections on the part of the OEM’s business partner, Western Digital, which opposed the sale. Toshiba also had to face the worrying prospect of being delisted by the Tokyo Stock Exchange as it scrambled to raise sufficient funds.
In addition, the OEM had to wait for approval of the sale to come from the Chinese government, which it received last month.
The chip unit has been bought by a Bain Group-led consortium which includes Apple Inc and Dell Technologies.
Toshiba has revealed that, through this deal, the OEM “repurchased 40 percent of the unit”.
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