April 18, 2024

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[THE INVESTOR] South Korea‘s major chipmaker SK hynix joined forces with US private equity firm Bain Capital to take over the memory division of Japanese tech giant Toshiba Corp., market sources said on April 19.

SK hynix formed a consortium with the Bain Capital to bid for Toshiba’s memory unit, which would make the South Korean firm the world's No. 2 player of the NAND flash memory industry, should the deal be successful.

SK hynix declined to confirm whether the company actually established the consortium with Bain Capital.

SK hynix is estimated to have suggested 2 trillion yen (US$18.4 billion) for the deal, while Japanese media reported Taiwan’s Hon Hai Precision Industry Co. has offered 3 trillion yen.

The South Korean firm plans to invite a Japanese investor for a global-level consortium, with its ties to Bain Capital serving as leverage to secure a competitive Japanese investor, market watchers said.

Earlier this month, SK Group Chairman Chey Tae-won expressed a strong will to take over the memory division of Toshiba.

“The bidding for Toshiba that is currently being processed is not binding. Accordingly, the price holds no significance,” Chey said earlier this month.

Toshiba plans to sell up to its entire stake in its memory operations as it struggles with losses from its nuclear power business in the United States. The Japanese firm initially only intended to sell around a 20 percent stake.

By Alex Lee and newswires (alexlee@heraldcorp.com)