Western Digital to offer £10 million for Toshiba chip business
A group of companies have in total said they'd stump up £13.6 billion for a share
A group of tech companies has offered to buy Toshiba's chip business for an estimated 13.6 billion, with Western Digital offering 10 million for a share.
Other companies involved in the deal, according to Reuters, are U.S. private equity firm KKR & Co, the state-backed Innovation Network Corp of Japan and Development Bank of Japan. These firms have offered 20 million each.
Toshiba's existing lenders Sumitomo Mitsui Banking Corp and Mizuho Bank would make up the shortfall, each paying 50 million in loans to the company. Other Japanese companies would pay 3.5 million to ensure it has at least a 60% domestic share, as per the law in Japan. Toshiba would keep a 7 million stake in the business.
However, Western Digital has previously attempted to block a sale of Toshiba's chip business this year, when it alleged the firm has not honoured a previous agreement that stated Toshiba could not sell its chip business without seeking permission from the storage firm.
Western Digital and Toshiba jointly run a semiconductor plant and as a result, Western Digital thinks it's well within its rights to demand it has a say in any sale of the business.
People "familiar with the matter" explained Toshiba is in a bit of a hurry to come to a deal with purchasers by the end of the month so they can close the deal by March 2018, at which point Toshiba's shares would be delisted from the Tokyo Stock Exchange if it reports negative worth or liabilities exceeding worth.
Neither Toshiba, nor Western Digital would comment on the offer and Reuter's sources insisted upon anonymity as the talks were confidential.
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