Toshiba seemed pretty confused in selling its business once and for all and the company’s employees saw lots of ups and downs. Now, the company has finally decided to sell its chip-making business and the deal has been signed against $18B. There was a bit of drama at the end as most of us knew that the business is going into the hands of Western Digital but they opted a consortium led by Bain Capital LP instead. Ironically, SK Hynix is a part of this consortium which is a separate headache for Western Digital.
Details of The Deal
In further details, the deal has been confirmed by SK Hynix as the company’s board of directors want to go for the Bain Capital’s consortium. Talking about SK Hynix’s part, it is investing 395 billion Yen out of the 2 trillion Yen investment. So a fair part of the business remains in the hands of Japanese companies which means the deal went all good for the Japanese government. Toshiba still has a fair share of 40.2 percent of Toshiba Memory Corp. On the other hand, the Bain-led consortium controls the major part i.e. 49.9 percent and the rest of the 9.9 percent stake is owned by Hoya Corp. which is a Japanese medical company.