Despite the development, there is a level of uncertainty caused by legal measures taken by Western Digital Corp, Toshiba’s joint venture partner in its chip business.
On Thursday Japan’s embattled Toshiba Corp is expected to formalize the sale of its prized NAND memory business to a consortium led by U.S private equity firm Bain Capital; its jilted joint venture partner Western Digital has taken fresh legal action to block the sale.
According to sources familiar with the matter at hand, the formal signing of the contract by Toshiba is awaiting commitment letters from all participants.
The Japanese giant is struggling to plug a hole in its balance sheet which the sale of its chip business will cover.
The sale of the world’s second largest producer of NAND memory chips brings tantalizingly close an end to the fraught process.
Reflecting the uncertainty around the sale, Toshiba’s shares fell by 2.9% in morning trade.
In order to bolster its bid, Bain has brought in Apple and Dell to its consortium.
As per SK Hynix, Bain Capital’s partner in the consortium, it was committed to ironing out the remaining issues in the contract.
It remains to be seen how Western Digital will react. On Wednesday it filed its latest legal petition against Toshiba’s proposal sale to Bain Capital since it was done without its consultation.