US tech titans Apple Inc and Dell Inc have joined a bid to buy Toshiba Corp’s memorychip business, a deal seen as key to the survival of the cash-stripped Japanese industrial conglomerate, the US investor leading the consortium has said.
“Last week, Bain Capital made a revised offer” for Toshiba, which “brings in a broad list of strategic partners including Apple, Dell” and others who will invest in the business, Bain Capital said in a statement yesterday.
It was the first time Apple’s name has been officially confirmed as part of the bid, although it has reportedly also been involved in rival bids for the lucrative Toshiba segment.
Photo: AFP
The iPhone maker is in talks to provide about US$3 billion in capital for the bid. If the agreement is completed, it might exceed Apple’s largest deal, the US$3 billion acquisition of Beats Electronics LLC.
The announcement came after Toshiba last week said that it had picked the Bain Capital-led consortium as the leading candidate to buy its prized chip business in a deal reportedly worth about US$18 billion.
The development was the latest twist in a long-running saga as Toshiba agonizes between three groups of suitors for its chip business.
The Bain Capital-led group also includes the state-backed Development Bank of Japan and the public-private Innovation Network Corp of Japan as well as South Korean chipmaker SK Hynix Inc.
However, Toshiba has said that it was a “non-exclusive” agreement with Bain Capital that “does not exclude the possibility of negotiations with other consortia.”
Other suitors in the frame are a group led by Western Digital Corp, Toshiba’s US-based chip factory partner, and Hon Hai Precision Industry Co (鴻海精密), better known as Foxconn Technology Group (富士康).
Toshiba is aiming to finalize the deal at a board meeting on Wednesday, despite opposition from partner Western Digital, according to people familiar with the matter.
Toshiba’s effort faces resistance because the Bain Capital-led group includes several Western Digital competitors, including Seagate Technology PLC, Kingston Technology Co and SK Hynix, said the people, asking not to be identified because the matter is not public.
Toshiba has sued Western Digital for trying to block the sales process.
“We believe this proposal represents a solution that meets the needs of all stakeholders,” Bain Capital said in the latest statement.
The proposal “represents the best possible outcome for Toshiba by ensuring” the memorychip business’ independence, Bain Capital said.
Kaori Hiraki, a spokeswoman for Toshiba, said she could not comment on the details of the deal.
Additional reporting by Bloomberg
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