Tuesday June 20, 2017
09:12 PM GMT+8

Advertisement

More stories

Toshiba, which needs to sell the prized chips unit to cover billions of dollars of losses from its now-bankrupt US nuclear unit, is in the final stages of deciding on the group as preferred bidder. — Reuters picToshiba, which needs to sell the prized chips unit to cover billions of dollars of losses from its now-bankrupt US nuclear unit, is in the final stages of deciding on the group as preferred bidder. — Reuters picTOKYO, June 20 ― Embattled Toshiba Corp will pick a Japanese government-led group of Japanese, US and South Korean firms and funds to buy the conglomerate’s semiconductor business, a person briefed on the matter said today.

The group includes the state-backed fund Innovation Network Corp of Japan, the government’s Development Bank of Japan, and US private equity firm Bain Capital, sources have told Reuters.

South Korean chipmaker SK Hynix Inc and the core banking unit of the Mitsubishi UFJ Financial Group Inc are to provide financing under the consortium’s proposal, they said.

Toshiba, which needs to sell the prized chips unit to cover billions of dollars of losses from its now-bankrupt US nuclear unit, is in the final stages of deciding on the group as preferred bidder.

Another person with direct knowledge of the matter said Toshiba’s board will vote on a preferred bidder tomorrow and announce the result through the Tokyo Stock Exchange.

A Toshiba spokeswoman said the company cannot comment on specifics of the sale process.

The Japan-US-Korea bid has been orchestrated in large part by Japan’s trade ministry, which wants to keep the valuable chip unit under domestic control.

The consortium, whose bid clears Toshiba’s ¥2 trillion (RM77.1 billion) minimum, has been seen as one of the strongest suitors for the unit ― the world’s No. 2 producer of NAND chips ― as it would automatically have the government’s stamp of approval, the sources said.

It is fighting to counter a ¥2.2 trillion yen from US chipmaker Broadcom and its partner, US private equity firm Silver Lake, which sources have said Toshiba management favours. ― Reuters

Trending Videos

Trending Videos

Advertisement

MMO Instagram

Tweets by @themmailonline