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Japan: Toshiba chip sale held up

By  |  August 14, 2017

The sale of Toshiba’s chip business has reportedly been held up due to a dispute over the payments schedule, along with the continued uncertainty caused by the firm’s ongoing dispute with Western Digital.

Toshiba’s preferred bidder for the unit, a consortium led by private equity outfit Bain Capital, is unsettled by the ongoing dispute between Toshiba and Western Digital, according to Bloomberg. The consortium therefore wants to stage payments, with the lion’s share being paid after Toshiba has settled the dispute.

Toshiba, on the other hand, wants the payments to be made much earlier in order to avoid being delisted from the Tokyo Stock Exchange, which could happen by March 2018 unless it can get its finances in order.

The dispute over payments is the reason why Toshiba has re-opened talks with other bidders, including Taiwanese electronics manufacturer Foxconn.

Full Content: Bloomberg

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