Toshiba in preliminary deal with Bain, Apple group

Business 9/13/2017, 4:14 PM
Toshiba in preliminary deal with Bain, Apple group

The division producing NAND flash memory may be sold to a consortium led by Bain Capital LP, including Apple Inc., according to a non-binding memorandum of understanding Toshiba Corp. signed on Wednesday. The move comes amid a collapse in talks with the group led by Western Digital Corp., the struggling electronic giant's partner in the joint venture, following a fiery legal dispute.

The Japanese company stated it will seek to complete negotiations with the new favorite bidder by the end of the month, but it didn't give up on the right to talk to other interested parties. The consortium includes South Korea's SK Hynix Inc. and, reportedly, the Development Bank of Japan and the Innovation Network Corporation of Japan (INCJ), which are also in the combination with Western Digital and KKR. 

The group said it would borrow ¥600 billion ($5.4 billion) from Toshiba's creditor banks. The document notes the current owner would keep a share in the enterprise. Talks with Bain failed once before, and in the meantime the buyout firm brought in Apple.

TeleTrader Newsroom / IT

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