Toshiba’s board has reportedly agreed to sell its memory chip unit to the Bain-led consortium for ¥2.1tn ($18bn), although the parties have not yet signed on the dotted line according to a source by Reuters.
US private equity firm Bain Capital will lead the international consortium, along with other investors such as Apple, which has reportedly invested at least $3bn. Further businesses investing in the venture include Dell Technologies, Seagate and South Korea chipmaker SKY Hynix.
The consortium, led by Bain, was outlined as the preferential bidder earlier this year, but delays from lawsuits, government and corporate decisions had led to the delay of the sale.
Toshiba’s sale has been complicated and delayed by its venture partner Western Digital, which wanted input into any business sale as partner in the chip business.
However, to avoid delays Bain has reportedly agreed to seal the deal with Toshiba despite the unresolved legal battle with Western Digital and if agreed with the chip maker company the purchase price would be adjusted, according to Bloomberg sources.
The sale of it’s memory chip unit is crucial for Toshiba in order to remain listed on the Toyko Stock Exchange and also gain further funds to cover losses from its nuclear power station project in the US.
After months of speculation as to who Toshiba will sell its memory chip unit to it is expected to make a formal announcement later today.