Toshiba chip business sale back to square one after SK Hynix hostility

After failing to reach a deal with a preferred bidding group before a self-imposed deadline, Toshiba will once again openly consult potential suitors in order to sell off its semiconductor unit.

Reuters reports that the Japanese conglomerate, which itself will not name the other bidders, is working offers from Western Digital and Foxconn as well as the preferred group that’s led by Bain Capital, SK Hynix and two firms related to the Japanese government.

SK Hynix was reportedly looking to get convertible bonds out of the deal which could allow it to take equity in the business as opposed to just operating it. Ironically, to curry favor with the same government that’s backing that bid, Toshiba has been insistent on keeping all equity within Japanese firms.

Toshiba has also been skeptical of Western Digital’s bid — that company bought off Toshiba partner SanDisk last May.

Toshiba could gain more than $18 billion out of this sale, money it needs to keep its balance sheets at levels where the company can still be listed on the Tokyo Stock Exchange.

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.