Toshiba has reached an agreement to sell its memory chip business to a consortium led by Bain Capital for JPY 2 trillion. The company aims to complete the sale by March 2018, bringing to an end its negative equity and improving its balance sheet considerably.
Toshiba said it plans to invest JPY 350.5 billion in the semiconductor business prior to the transfer to the new owners, which will give it certain rights such as dividends after the sale. The purchasers, operating under the name Pangea, also agreed to go ahead with the deal even if Toshiba's joint venture assets with Western Digital are blocked by the latter's legal action. WD had also pursued a bid for Toshiba's memory business and claimed it had pre-emptive rights due to their cooperation.
Toshiba said Innovation Network Corp of Japan and the Development Bank of Japan have decided not to participate in the Bain consortium at this time, but may invest still at a later date. Subject to agreement, Toshiba will allow the two groups, which were set up to support Japanese industrial interests, to manage part of its remaining voting rights in the memory business after the sale.
