Deals
Bain-Led Group to Buy Toshiba Chip Unit in $18 Billion Deal
- Shares in Western Digital fall after deal is announced
- Deal moves to resolve contentious 8-month bidding process
Toshiba's Board Agrees to Sell Chip Unit for $18B
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Toshiba Corp.’s board agreed to sell its flash memory chip unit to a group led by Bain Capital for 2 trillion yen ($18 billion), taking an important step toward ending a contentious bidding process that has stretched over eight months.
The Bain consortium includes backing from Japanese and overseas companies, including Toshiba, which will reinvest 350.5 billion yen, the company said in a statement. Apple Inc., Dell Inc., SK Hynix Inc. and Japan’s Hoya Corp., will provide financial support, according to people familiar with the situation. The iPhone maker played a crucial role in swinging momentum in the tumultuous auction to the Bain offer.