Toshiba set to choose Western Electronic-led team for chip unit – Nikkan Kogyo


Japan’s embattled Toshiba Corp is set to sell its memory chip unit to a consortium led by Western Electronic Corp for about two trillion yen (US$18.3 billion), the Nikkan Kogyo organization day-to-day said on Tuesday without the need of citing sources.

FILE Photo: A Western Electronic business developing below construction is proven in Irvine, California, U.S., January 24, 2017. REUTERS/Mike Blake/File Photo

Tokyo: Japan’s embattled Toshiba Corp is set to sell its memory chip unit to a consortium led by Western Electronic Corp for about two trillion yen (US$18.3 billion), the Nikkan Kogyo organization day-to-day said on Tuesday without the need of citing sources.

Toshiba ideas to make a formal final decision on Wednesday with the signing of an arrangement to occur on Sept. twenty just after a board meeting on Sept. twenty, the Nikkan Kogyo said.

Resources have informed Reuters Toshiba’s board is because of to meet on Wednesday to think about delivers from 3 teams. A single particular person with direct awareness of the talks said negotiations concerning Toshiba and Western Electronic are ongoing.

The sources declined to be named mainly because they were being not authorised to examine the make any difference publicly.

A Toshiba spokesman said no final decision has been produced on the sale of Toshiba Memory, and that the company is not commenting on specifics of the bidding process.

Toshiba is determined to sell the unit to protect billions of liabilities at its U.S. nuclear unit Westinghouse.

In addition to the Western Electronic-backed consortium which also involves KKR & Co LP and Japanese federal government traders, Toshiba has said it is also considering a bid led by Bain Cash and South Korea’s SK Hynix as well as 1 by Taiwan’s Foxconn.

Resources have informed Reuters that Western Electronic, which jointly invests in Toshiba’s essential chip plant, has made available to step back again from the consortium’s funding as a compromise, but it still would like a future stake in the chip organization.

Nikkan Kogyo said the two providers are in the remaining stages of talks to perform out how huge a stake Western Electronic will eventually have in the chip unit.

(US$1 = 109.37 yen)

(Reporting by Aishwarya Venugopal in Bengaluru, Taiga Uranaka and Ritsuko Ando in Tokyo Editing by Sriraj Kalluvila and Edwina Gibbs)



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