Menu
Toshiba’s chip business could be worth over $35B

Toshiba’s chip business could be worth over $35B

Toshiba now has the option to cancel the sale without penalty

A Hong Kong-based activist investment fund opposed to Toshiba’s US$18 billion sale of its chip unit to a Bain Capital-led group said the business was worth as much as double its agreed price and the deal should be renegotiated.

Toshiba now has the option to cancel the sale without penalty as the deal failed to close by an agreed deadline of March 31. The two sides are still waiting on regulatory approval from China.

Argyle Street Management, with US$1.3 billion under management, has been urging Toshiba to reconsider and opt to list the prized unit instead. While the fund says it has other activist investors on its side, it is not clear how much support it has. It has also not disclosed the size of its stake in Toshiba.

The fund said in a statement on Friday that the unit, which is due to be sold for some 2 trillion yen (US$18.6 billion) should be renegotiated at a valuation of 3.3 trillion yen to 4.4 trillion yen.

A Toshiba spokeswoman said the company was still waiting for regulatory approval on the deal, and that its stance was to wait. She declined to comment on the Argyle statement.

Toshiba Chief Executive Nobuaki Kurumatani told reporters earlier this week that the company had no plans to cancel the sale unless there were "major material changes" in circumstances.

The Bain consortium last year won a long and highly contentious battle for the unit, which Toshiba put up for sale after billions of dollars in cost overruns at its Westinghouse nuclear unit plunged the Japanese conglomerate into crisis.

While the sale of the chip unit was once thought necessary to rescue Toshiba from insolvency and a delisting, the conglomerate no longer needs the funds as much, having raised US$5.4 billion from a share issue to foreign investors late last year.

(Reporting by Makiko Yamazaki and Taro Fuse; Writing by Ritsuko Ando; Editing by Edwina Gibbs)


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 storagetoshibaBain

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
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
Show Comments