Western Digital Won’t Seek Management Role In Toshiba Memory Chip Business
Western Digital Corp, who have offered to purchase Toshiba’s memory chip business as part of a consortium, will not seek a management role as part of the sale.
Word is, Toshiba’s business executives are wary of a deal with the US-based firm, hence Western Digital’s offer comes in light of this.
Sources state the US-based firm will initially not seek voting rights, and even after it converts its bonds to shares, will promise to keep its voting rights to less than a third.
The consortium has offered $17.3 billion for Toshiba’s chip business, with Western Digital offering 150 billion yen through convertible loans.
Previously, relations between the two companies soured after Western Digital purchased Sandisk – notably Toshiba’s memory chip partner for 17 years.
Sources state Toshiba does want to close the sale by end of fiscal year in March, to avoid reporting negative net worth, resulting in a potential delisting from the Tokyo Stock Exchange.
If the two parties can agree on a deal, Toshiba’s board intends to vote on Western Digital’s offer on the 31st of August.