View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Hardware
September 28, 2017

Toshiba FINALLY sells chip unit for $18bn – who had the winning bid?

Toshiba has finally sealed the deal of its memory chip unit, to a consortium of companies.

By April Slattery

Toshiba has finally announced the sale of its memory chip unit for $18bn to a consortium led by Bain Capital.

After eight months of bid battling, the chipmaker has now signed a deal to sell its memory chip unit. Rumours of Apple being part of the investment materialised, as well as Dell also being among the technology companies included in the Bain Capital-led consortium.

Other investors in the group include Japanese Hoya, South Korea’s SK Hynix, Kingston Technology Corporation and Seagate Technology.

Toshiba FINALLY sells chip unit for $18bn - who had the winning bid?

Apple has been revealed as one of the US investors in the sale.

The consortium buying Toshiba’s Memory Corporation (TMC) will be known as ‘Pangea’, formed and controlled by Bain Capital. Terms and conditions to the sale have been outlined by Toshiba in a share purpose agreement (SPA).

Toshiba’s SPA brings a set of conditions, stating that the Japanese companies among the investors will hold over 50% of the common stock in the ‘special company’, Pangea.  In comparison, US investors of the memory chip business will not hold any voter rights or common stock.

Chipmaker Company Toshiba said: “The US investors will not acquire any common stock or voting rights over TMC. In addition, SK Hynix will be firewalled from accessing TMC proprietary information and will not be permitted to own more than 15% of the voting rights for a period of 10 years.”

Following the transfer of shares to Pangea, Bain Capital and Toshiba has said the consortium and TMC management will “lead TMC’s business operations to secure continuous growth”.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Although the deal has already been confirmed, regulatory requirements are still necessary to ensure the agreement doesn’t breach any rules or national security.

Toshiba is still in an on-going legal battle with joint venture Western Digital, who wants to stop the sale due to claims it breaches partnership agreements.

Western Digital’s position in the sale
Other areas Apple are tapping into

Regarding the legal dispute, Toshiba has said: “The SPA contemplates that the sale of TMC will be consummated even if the Joint Venture interests have not been transferred to TMC prior to the closing, unless the transfer of TMC’s stock itself is blocked by an injunctive order.”

Upon agreement on the terms between Toshiba and Pangea, the memory chip company aims to seal the deal by the end of March 2018.

Topics in this article : , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.