Wednesday, June 21st 2017

Toshiba Elects Preferred Bidder for Its Memory Business Sale

The Japanese Toshiba have been in a sort of bad run lately, following disastrous investments into nuclear plants and a $1.2 billion "mistake" in their earnings reports, which gave the company a hard time in refinancing itself in the Tokyo Exchange. Now, in a bid to sell a 20% stake of their highly successful memory business, the company has elected a preferred buyer. And in what might not come as a surprise, they elected a US-Japan consortium led by the Japanese government itself.

Toshiba said it selected the consortium, consisting of Innovation Network Corporation of Japan (a 26-strong network which includes Sony, Canon and Toyota, among others), Bain Capital Private Equity LP (based in Boston) and the Development Bank of Japan, because it presented "the best proposal in terms of valuation and respect" to "certainty of closing, retention of employees" and I quote again, "maintenance of sensitive technology within Japan". Terms of the deal were not disclosed although analysts have previously estimated Toshiba Memory Corporation to be worth around $20 billion. In its announcement, Toshiba said it intends to reach an agreement for purchase with the consortium before its annual shareholders meeting on June 28. If all goes well, the Japanese tech giant is looking to close on the transaction by March 2018, pending regulatory approval and so forth.
Source: ABC News
Add your own comment

2 Comments on Toshiba Elects Preferred Bidder for Its Memory Business Sale

go japan
Is hard if not impossible. ALL Japanese electronic companies are stuck in the past, with extremely poor upper management - promotions are done based on work longevity rather than competence, very old dudes with no energy for innovation left in upper key positions, etc. The American, Korean and Taiwanese companies are the ones that lead now in all areas of innovation, and also the ones that are mostly grabbing all the cash flow. Japan electronics companies are due to a slow death unfortunately. Unfortunately, since the quality control in Japan is still the best in the world.
Posted on Reply