Silver Lake Partners and Broadcom offer $17.9 billion for stake at Toshiba’s flash memory unit

The Nikkei has reported that bidders will be asked to disclose whether they will be reselling their stake in the near future. The acceptance of their bids will depend on their answer.

Japan’s business daily has reported today, that U.S. private equity firm, Silver Lake Partners LP and U.S. chipmaker Broadcom Ltd have offered $17.9 billion (2 trillion yen) for Toshiba Corp’s chip manufacturing unit.

As per a source with knowledge of the matter, there are around 10 potential bidders who are interested in buying a stake in Toshiba’s flash memory unit.

The bidders include financial investors, Western Digital Corp which already operates a chip manufacturing plan with Toshiba in Japan, South Korean chip manufacturer SK Hynix Inc, and Micron Technology Inc.

Toshiba aims to make at least 1 trillion yen from the sale to offset its writedowns at its Westinghouse nuclear unit.

The company expects investors to value its chip operations at around 2 trillion yen.

The Nikkei has also reported, without disclosing the source, Toshiba will also be asking potential bidders whether they intend to resell their stakes before they take a decision on the sale. This matter is likely to come up in the shareholder’s meeting in June.

Advertisements


Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: