Toshiba Corp has received a US$17.4 billion (1.9 trillion yen) offer for its memory chip business.
Reports state the sale will help offset losses resulting from Toshiba’s foray into nuclear power.
The offer was made by a consortium, inclusive of; Western Digital, American private equity firm KKR & Co, Innovation Network Corp of Japan and Development Bank of Japan, who will each contribute 300 billion yen.
The proposal also includes Toshiba’s lenders – Sumitomo Mitsui Banking Corp and Mizuho Bank – offering about 700 billion yen in loans.
Reports state Toshiba itself would retain a 100 billion yen stake in the chip business.
Several Japanese companies will also be contributing, with the intention of ensuring Japanese firms retain a combines 60% stake.
The talks remain confidential with no parties offering comments on the discussion, thus far.
Sources state Toshiba desires to reach a deal by the month’s end, with the sale being closed by the end of fiscal year in March.
It is assumed this is to avoid the company reporting negative net worth/liabilities exceeding assets for the second consecutive year.
This would be especially worrying as it could result in a de-listing from the Tokyo Stock Exchange.
