On the user Toshiba under pressure to consider alternatives to the sale of the semiconductor industry the selected candidate

Selling for $ 18 billion semiconductor manufacturing Toshiba consortium, which includes the Fund Innovation Network Corporation of Japan (INCJ), an investment company Bain Capital Private Equity LP, the Bank Development Bank of Japan (DBJ) and the company SK Hynix, stalled. In these circumstances, some banks and potential investors began to put pressure on the leadership of the Japanese company that it has considered alternative courses of action. About it reports the source with reference to the informants, directly involved in the situation.

As stated, manual Toshiba remains committed to the original plan, but it raises serious doubts, and time is running out. If, before the end of the fiscal year will not be able to cover billions of dollars in losses associated with the activities of the American branch, working in the field of nuclear energy, the shares of the company automatically will leave the Tokyo stock exchange.

«Toshiba in a hurry chose the consortium to catch up to the annual meeting of shareholders, but over time more evident weaknesses» — leads the source words of one of the bankers.

Company SK Hynix, originally included in the consortium to help Finance the transaction, is now claiming the share of enterprises that concern the Japanese side. Previously, Toshiba has assured that SK Hynix did not receive a share and will not participate in management.

Refusing the deal in its current form leaves the only option: sell to another buyer — Western Digital, who spoke at the auction with the support of the investment company KKR. She can join DBJ and INCJ, do not approve the participation of SK Hynix at the time of purchase.

However, the company Western Digital, which partner Toshiba in joint ventures for the production of flash memory, is her strained relationship since tries to prevent the sale to another buyer.

Sale of other assets is unlikely, since Toshiba left them a little, and the division of the company would take too much time.

Source: Reuters

Western Digital


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