Toshiba to buy back chip business?
May 21, 2019
The OEM finally completed the long-anticipated $18 billion (€15.4 billion) sale of its memory chip unit to a Bain Group-led consortium in June 2018.
According to an article on macrumours.com, Toshiba is now looking to buy back the shares it sold to the Bain Group-led consortium, including Apple, Dell, Kingston, and Seagate Technology.
As the Wall Street Journal reports, specifically the shares sold to Apple, Dell, Kingston and Seagate Technology are on Toshiba’s list. “Toshiba received the capital to buy out the companies from Japanese banks, totalling $11.8 billion (€10.42 billion)”, according to macrumours.com.
Toshiba first put the chip unit up for sale in order to recoup massive losses suffered as a result of the bankruptcy of its US-located nuclear unit, which “plunged it into crisis.” However, the process of finding a suitable buyer was fraught with difficulty, in part due to objections on the part of the OEM’s business partner, Western Digital, which opposed the sale. Toshiba also had to face the worrying prospect of being delisted by the Tokyo Stock Exchange as it scrambled to raise sufficient funds.
Categories : City News
