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

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments