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The Korea Herald
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THE INVESTOR
March 28, 2024

Mobile & Internet

Toshiba board approves sale of memory chip unit

  • PUBLISHED :October 25, 2017 - 16:16
  • UPDATED :October 25, 2017 - 16:17
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[THE INVESTOR] Tokyo-based tech firm Toshiba gained the board’s approval to sell its memory business on Oct. 24.

Shareholders of the Japanese firm gave the green light to the planned sale of its memory unit to a consortium led by US private equity fund Bain Capital. Other device and component makers such as Apple, Dell, and SK hynix are also participating in the consortium.




The group was picked last month to acquire Toshiba Memory Corp., the second largest NAND flashy memory chipmaker after Samsung, beating other bidders, including a group led by US storage system firm Western Digital.

The purchase of the memory unit will be funded through a combination of investments and loans from the consortium members and banks.

Toshiba and Japanese optical product firm Hoya, which will likely invest 350.5 billion yen (US$3.07 billion) and 27 billion yen, respectively, will own more than 50 percent of the common stock. Bain Capital and Korean memory chipmaker SK hynix are expected to pour 212 billion yen and 395 billion yen, repectively, for the deal.

Of SK hynix’s 395 billion yen, 129 billion yen is to be used to buy convertible preferred stocks for the Toshiba unit and the rest 266 billion yen will be utilized to buy nonconvertible bonds, according to SK hynix.

The 129-billion yen investment is tantamount to 15 percent of the Japanese memory chip unit.

Before closing the Toshiba deal, the consortium has to iron out other issues, such as lawsuits with Western Digital, and antitrust screening in some 10 global markets, which will take at least six months.

“The consortium is trying to close the deal by March next year and is keeping a close eye on all related issues,” said an industry source close to the matter.

By Kim Young-won (wone0102@heraldcorp.com)

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