Toshiba Picks Preferred Bidder for Microchip Business

Toshiba Picks Preferred Bidder for Microchip Business

By | June 22nd, 2017
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Toshiba said on Wednesday that a consortium made up of the Innovation

Network Corporation of Japan, Bain Capital and the Development Bank of

Japan had “presented the best proposal.”


														
							

As Toshiba, the embattled technology giant, battles for survival, it has turned to a group led by the Japanese government to buy its prized microchip business, although its plans still face a legal challenge by an American business partner.

After weeks of jockeying among suitors, Toshiba said that it hoped to reach a formal sale agreement over its semiconductor business by next Wednesday, in the process raising much-needed cash. The company did not disclose terms of the potential deal, but analysts have estimated the value of the memory chip unit at about $20 billion.

Such a deal would significantly bolster the fortunes of a titan of the Japanese economy at one of the lowest moments in its century-long history. Steep losses in its American nuclear power division, Westinghouse Electric, have cast “substantial uncertainty” over the company’s ability to function as a going concern, it says.

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Nisheeth Bhakuni