Home >Companies >Toshiba says seals $18 billion deal to sell chip unit to Bain Capital group
Toshiba chose Bain over a group led by KKR & Co. and two state-backed funds, Innovation Network Corp. of Japan and Development Bank of Japan. Photo: Reuters
Toshiba chose Bain over a group led by KKR & Co. and two state-backed funds, Innovation Network Corp. of Japan and Development Bank of Japan. Photo: Reuters

Toshiba says seals $18 billion deal to sell chip unit to Bain Capital group

Toshiba has agreed to sell its chip unit to a group led by Bain Capital, a key step in keeping the struggling Japanese conglomerate listed on the Tokyo exchange

Tokyo: Japan’s Toshiba Corp. said on Wednesday it has agreed to sell its prized semiconductor business to a group led by US private equity firm Bain Capital LP, a key step in keeping the struggling Japanese conglomerate listed on the Tokyo exchange.

Toshiba said in a nighttime announcement through the exchange it had signed a contract for the deal worth about 2 trillion yen ($18 billion), the latest and perhaps final twist in a deal that only hours earlier had seen the company leading toward an agreement with its US joint venture partner Western Digital Corp.

The decision to sell the world’s No. 2 producer of NAND memory chips, first reported by Reuters on Wednesday, was made at a board meeting earlier in the day.

Toshiba said the agreement assumed the deal would weather legal challenges raised by Western Digital. A Western Digital spokeswoman said the company did not have an immediate comment. Reuters

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