Toshiba outlined three prerequisites on Friday, October 6, for completing the sale of its flash memory unit, underscoring that the recent agreement with a Bain Capital-led consortium was only half the battle.
The Japanese conglomerate provided details of the Toshiba Memory deal with the Japanese-American-South Korean team to shareholders in a notice regarding an extraordinary meeting this month.
The first condition is that the agreement must pass antitrust screenings in 10 countries and regions, including Japan, China and the US The main concern is China, where such reviews can take six months or more. Toshiba is counting on proceeds from the sale to return its net worth to positive territory within the fiscal year ending in March so that the company can avoid delisting from the Tokyo Stock Exchange.
The South Korean chipmaker and Toshiba Memory rank fifth and second, respectively, in the global flash memory market with a combined share of 26%. The deal aims to address concerns on this front by not allowing SK Hynix’s voting rights to exceed 15% for a decade after the sale.
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