Menu
Toshiba chip unit to go public after Bain Capital buyout

Toshiba chip unit to go public after Bain Capital buyout

Toshiba aims to complete the sale by the end of its fiscal year in March

US private equity firm, Bain Capital, has said it aims to list Toshiba Corp's chip unit on the Tokyo Stock Exchange within three years, to cash in its investment after leading an US$18 billion acquisition of the business.

Bain, whose consortium signed the purchase deal last week, also said it hopes to settle legal disputes over the transaction at an early stage with Western Digital Corp, Toshiba's joint venture partner.

Toshiba aims to complete the sale by the end of its fiscal year in March. It plans to use the proceeds to plug a hole in its balance sheet caused by the bankruptcy of its US nuclear power subsidiary, and save itself from potential delisting.

With the clock ticking, Bain filed for antitrust approval in China the day after signing, a person familiar with the matter said on Wednesday.

Several other sources told Reuters that the strategic nature of the chip industry for China and political complications - including currently tense relations with South Korea, and the presence of South Korea's SK Hynix Inc in the consortium - could see a lengthy process drawn out even further.

In the first news conference since the signing, Yuji Sugimoto, head of Bain Capital in Japan, told reporters on Thursday that Bain hopes to maintain stability at the chip unit through contracts with Apple, a major client and member of the buyout consortium.

"We have already made (antitrust) filings for regulatory approvals globally. We are making utmost efforts to close the deal by the end of March," Sugimoto told reporters.

The sale, however, faces legal challenges from Western Digital, which offered a rival bid and is seeking an injunction to block any deal that does not have its consent.

Western Digital paid some US$16 billion last year to acquire SanDisk, Toshiba's chip joint venture partner since 2000. It sees chips as a pillar of growth and so is keen to keep the business out of the hands of rival chipmakers.

"Western Digital remains an important JV partner," Sugimoto said. Bain "will help solve the legal disputes (between Toshiba and Western Digital) and help them grow together."

But he said Bain aims to close the deal even if the disputes are not resolved beforehand.

Toshiba has said the joint venture is a tiny portion of the chip unit and that it can sell the business without the joint venture. Western Digital disagrees.

For Bain, the deal is part of an aggressive expansion strategy in Japan. Only days after the Toshiba deal, Bain announced a US$1.4 billion bid for Japan's third-largest advertising agency, Asatsu-DK, in one of the largest buy-outs in the country this year.

(Reporting by Makiko Yamazaki and Junko Fujita; Writing by Miyoung Kim; Editing by Christopher Cushing)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Appletoshibawestern digitalBain Capital

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments