Wednesday, September 19, 2018
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Youtube Launches New Gaming Section
U.S. Justice Department Probes Elon Musk Over Statement on Taking Tesla Private
Microsoft Announces With New AI, HoloLens Features
Nintendo Switch Fortnite Double Helix Bundle Launches Next Month
Samsung's New Odyssey Z Gaming Laptop Retails for $1,800
Apple Paid 13.1 billion Euro Taxes to Ireland Ahead of Appeal
Firefox Reality VR Browser Now available for Viveport, Oculus, and Daydream
VIZIO's New 2018 Home Theater Sound Systems With Dolby Atmos is Starting at $499.99
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > Toshiba...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, September 28, 2017
Toshiba Signs Deal to Sell Chip Unit to Bain-led Group

Toshiba has signed a deal to sell its chip unit to a consortium led by Bain Capital LP for 2 trillion yen ($18 billion). The consortium inlcudes Bain Capital, Hoya Corporation, SK hynix, Inc., Apple, Kingston Technology, Seagate Technology plc, and Dell Technologies Capital.

Toshiba's board agreed last week to sell the unit, the world's second biggest producer of NAND chips, to the Bain group. However, the signing was delayed because consortium member Apple demanded new terms on chip supply in return for funding, sources familiar with the matter have said.

Now the Japanese company says that it has entered into a Share Purchase Agreement (SPA) with Pangea - a special purpose acquisition company formed and ontrolled by a Bain Capital Private Equity, LP (including its affiliates, Bain Capital)-led consortium).

Pangea will fund the acquisition of Toshiba Memory Corporation (TMC) directly or indirectly from: Toshiba 350.5 billion yen (re-investment); Bain Capital 212 billion yen; Hoya Corporation (Hoya) 27 billion yen; SK hynix, Inc. 395 billion yen; US investors 415.5 billion yen.

In addition, Pangea intends to secure loans in the amount of approximately 600 billion yen from financial institutions and banks. US investors are comprised of Apple Inc., Kingston Technology Corporation, Seagate Technology plc, and Dell Technologies Capital.

With Toshiba and Hoya's investments, Japan-based companies will hold more than 50% of the common stock in Pangea, and going forward Japan-based companies will continue to hold a majority. After the TMC shares are transferred to Pangea, Bain Capital and TMC management will lead TMC's business operations.

The US investors will not acquire any common stock or voting rights over TMC. In addition, SK hynix will be firewalled from accessing TMC proprietary information and will not permitted to own more than 15% of the voting rights in Pangea or TMC for a period of 10 years, Toshiba says.

Innovation Network Corporation of Japan (INCJ) and Development Bank of Japan Inc. (DBJ), which operate as neutral, independent organizations dedicated to promoting industrial competitiveness, have also expressed their interest in investing in Pangea or TMC at a later time, su bject to satisfaction of certain conditions. Toshiba plans to leave decision-making in respect of the exercise of a portion of its voting rights held in Pangea to INCJ and DBJ, while Toshiba will retainthe right to exercise these voting rights in its own discretion in certain circumstances.

Western Digital has sought to prevent a transfer of Toshiba's interests in certain Joint Ventures between Toshiba and SanDisk LLC (SanDisk), a subsidiary of Western Digital, to any third party. Toshiba and SanDisk are currently engaged in litigation and arbitration. Toshiba says that the Share Purchase Agreement (SPA) with Pangea contemplates that the sale of TMC will be consummated even if the Joint Venture interests have not been transferred to TMC prior to the closing, unless the transfer of TMC's stock itself is blocked by an injunctive order.

Seagate said in statement that with its participation, it expects to enter into a long-term supply agreement that ensures sufficient raw NAND for its solid state drives or SSDs, which are faster and lighter than hard disk drives.

Pressure from the Japanese government, changing alliances among suitors and a slew of revised bids has drawn out the auction over nine months - heightening the risk that the deal may not close before the end of Japan?s financial year in March as regulatory reviews usually take at least six months.

If the deal does not close before then, Toshiba is likely to end a second consecutive year in negative net worth, putting pressure on the Tokyo Stock Exchange to strip it of its listing status.

Bing to Focus on the PC Search Market        All News        Amazon Unveils 4K Amazon TV, Echo Spot, New Echo and Echo Plus
Bing to Focus on the PC Search Market     General Computing News      Google Makes Changes to Shopping Search Tweaks to Avoid Huge EU Fine

Get RSS feed Easy Print E-Mail this Message

Related News
Toshiba Posts Quarterly Profit on Chip Sale
Toshiba Delivers First SSD Using 96-Layer 3D Flash Memory
Western Digital and Toshiba Begin Sampling 96-layer QLC NAND
Toshiba Develops 703cm2 Film-based Perovskite Photovoltaic Module With a 11.7 Percent Power Conversion Efficiency
Toshiba Delivers RM5 vSAS Series SSDs Targeting SATA Applications
Value-Optimized Toshiba RC100 NVMe SSDs Now Available
Sharp to buy Toshiba's PC Business
Sharp close to Buying Toshiba's PC Business
Bain Capital to Support Toshiba Memory's Future Acquisitions
Toshiba Completes $18bn Sale of Flash Memory Unit
Toshiba Introduces New XS700 Series of Portable SSDs
Toshiba's Twin-Field Quantum Key Distribution Extends the Limit of Intercity Secure Communications

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2018 - All rights reserved -
Privacy policy - Contact Us .