Menu
Toshiba expecting to complete chip unit sale by June

Toshiba expecting to complete chip unit sale by June

Even if the deal did not close by then, it would close "at some point in April, May or June"

Toshiba expects the sale of its US$18 billion memory chip business to be completed by June at the latest, if not by an agreed deadline of the end of March, as it awaits antitrust regulatory approval from China.

“We've been making various efforts to close the deal in March," Yasuo Naruke, the head of Toshiba's chip unit, told reporters on Friday.

Even if the deal did not close by then, it would close "at some point in April, May or June," Naruke said during his visit to a new chip R&D centre in central Japan.

Toshiba agreed last year to sell the semiconductor business - the world's second-biggest producer of NAND flash memory chips - to a consortium led by U.S. private equity firm Bain Capital to plug a huge financial hole left by the bankruptcy of its U.S. nuclear unit.

It is widely viewed as unlikely to gain the necessary regulatory clearance by the end of the financial year in March, however, as Chinese reviews usually take at least six months.

Toshiba is in less of a rush to finalise the deal since it received injections of capital late last year from overseas investors. If it does not complete the deal by March, it has the option of walking away, sources have said.

Some activist shareholders have opposed the sale, arguing that the fresh capital made it unnecessary.

The flash memory chip business has been the source of most of Toshiba's earnings as the company struggles to grow other core businesses such as social infrastructure.

(Reporting by Makiko Yamazaki; Editing by Stephen Coates)


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 toshiba

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments