Sat, Jun 17, 2017 - Page 11 News List

Japan firms back Bain Capital bid for Toshiba unit


A group led by Bain Capital LP and Japanese investors has offered about ¥2.1 trillion (US$18.91 billion) for Toshiba Corp’s semiconductor division, emerging as a leading bidder in the hotly contested auction, people familiar with the matter said.

The US private equity firm has the backing of state-supported Innovation Network Corp of Japan (INCJ) and Development Bank of Japan (DBJ), seen as essential to winning Japanese government approval for an acquisition, the people said.

Bain is also in talks with KKR & Co, which led a rival bid, to join the consortium, one of the people said.

Toshiba shares yesterday rose 1.6 percent to close at ¥321.6 in Tokyo trading.

The other leading contender is US chipmaker Broadcom Ltd, which made an offer of about ¥2.2 trillion.

Toshiba’s board met on Thursday to discuss the proposals and aims to decide on a winner by the end of this month.

Under the Bain bid, INCJ would contribute ¥300 billion in equity, while DBJ would contribute another ¥300 billion in preferred shares and equity, the person said.

South Korean chipmaker SK Hynix Inc would provide only loans to avoid anti-trust hurdles and contribute about half of the bidding money, another person familiar with the matter said.

Taiwan’s Hon Hai Precision Industry Co (鴻海精密) has also submitted a bid for the chip unit, but Toshiba is reluctant to sell to the company because of its close ties to China.

Hon Hai chairman Terry Gou (郭台銘) has complained about the unfair process and vowed to press his case.

The auction has been complicated by objections from Western Digital Corp, which jointly owns certain chip assets with Toshiba.

The US company has sought to prevent the business falling into the hands of rivals and is opposed Broadcom in particular.

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