Japan’s Toshiba Corp recently signed into an $18 billion deal in which it sought to sell off its chip unit to a consortium led by Bain Capital LP. It is also making efforts to save itself from a possible delisting and it hopes to obtain the required funds in the shortest time possible.
The cancelling of the Tokyo news conference on the deal was received with mixed reactions by those parties that had been closely following on the undertaking. Bain came forward outlining that the consortium could not form a consensus.
It was last week that an agreement was reached to oversee the sale of the unit, which happens to be the second biggest producer of NAND chips globally. The consortium member Apple Inc caused delays in the signing process by demanding new terms on chip supply.
The consortium comprises of quite a large number of members. That will eventually make it difficult to reach a consensus regarding who is going to take the initiative. Hideki Yasuda while at the Ace Research Institute expressed optimism. If it turned out that the deal be successfully completed, it would tone down a lot of risks for Toshiba.
It was a few minutes before the meeting could start that the news conference got cancelled. Yuji Sugimoto, the head of Bain Capital in Japan spoke revealing that the disagreements over the briefing had absolutely nothing to do with the contract. A lot of people had been looking forward to see him mention the names of those members that objected to the news conference. He declined to mention those names.
An analyst following on the company opined, “The deal – which must also overcome legal challenges – will see Toshiba reinvest in the unit and together with Hoya Corp, a maker of parts for chip devices, Japanese firms will hold more than 50 percent of the business – a keen wish of the Japanese government.”
Western Digital, a company that happens to be one of the top manufacturers of hard disk drives purchased SanDisk at a $16 billion .It observes chips as major pillars of growth.