Toshiba and Western Digital can reach an agreement before the end of the month
Since attempts to negotiate with the previously selected preferred buyer stalled, Toshiba has made a priority of negotiating the sale of semiconductor manufacturing Western Digital. About it reports the source with reference to the newspaper Nikkei.
The market reacted to the message to increase the value of Toshiba shares as talks with Western Digital revive the hope of the conclusion of the transaction.
We will remind, in June, Toshiba was named the preferred buyer consortium, which includes Japanese funds with state participation, private investment company Bain Capital, and South Korean manufacturer of semiconductor chips SK Hynix.
However, the negotiations with the consortium were suspended after Western Digital company, acting through subsidiaries SanDisk partner Toshiba in three joint ventures for the production of flash memory, appealed to the court. According to Western Digital, sell without her consent violates the terms of the contracts on SP.
Then followed a lawsuit from Toshiba. Trial pushed from the transaction funds with state participation, which required Toshiba to settle a dispute prior to the sale.
According to Nikkei, the CEO of Toshiba has given to the negotiators to conclude an agreement with Western Digital until the end of the month. In this case, the transaction can get approval from regulators and be completed in the current fiscal year, which ends at the Toshiba at the end of March.
Subject to the agreement, the funds will support Western Digital. In addition, participation in the financing of the transaction will take private investment company KKR.