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Toshiba has formally signed an agreement to sell its memory chips group led by American investor Bain Capital for about $ 18 billion.
The sales consortium - which includes the US tech giants Apple and Dell, as well as the Korean chip company SK Hynix - is considered to be key to maintaining the Japanese conglomerate that is struggling.
Thursday signing a cap for a monthly saga that has seen heated court battles, controversial deals, and almost abolishing the list of one of the most famous Japanese companies.
"Today we have signed a sale agreement" for all the shares of its recognized business with a chip consortium of two trillion yen ($ 18 trillion), Toshiba said.
The Japanese company has already said last week that it will sell the company to a group led by Bain and intends to complete the sale by March.
Toshiba is the world’s number-two chipmaker behind Samsung and the division’s products are found in many smartphones and electronic gadgets.
The chip unit accounts for around a quarter of Toshiba’s total annual revenue and is the crown jewel in a vast range of businesses ranging from home appliances to nuclear reactors.
Toshiba narrowly averted a delisting this year, but it still faces the humiliating prospect of being yanked from Japan’s premier stock exchange if the sale does not raise enough money.
Selling the chip division is seen as key to Toshiba’s survival, as it battles to recover from multi-billion-dollar losses at its US nuclear operation Westinghouse Electric.
The Japanese industrial giant is still recovering from the disastrous acquisition of Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.
Those huge losses came to light as the group was still reeling from revelations that top Toshiba executives had pressured underlings to cover up weak results for years after the 2008 global financial meltdown.
Its most recent results published in August revealed a loss of $8.8 billion in the last fiscal year, although it predicted it would swing back into the black this year.
The losses were a major embarrassment for a cornerstone of Japan Inc, which traces its history back as far as 1875 when the company started life as a telegraph factory in what is now Tokyo’s Ginza shopping district.
Did You ❤ ❤ this post? DROP A C.O.M.M.E.N.T ... spill TEA.... Easy on Shade #jaiyeorie
The chip unit accounts for around a quarter of Toshiba’s total annual revenue and is the crown jewel in a vast range of businesses ranging from home appliances to nuclear reactors.
Toshiba narrowly averted a delisting this year, but it still faces the humiliating prospect of being yanked from Japan’s premier stock exchange if the sale does not raise enough money.
Selling the chip division is seen as key to Toshiba’s survival, as it battles to recover from multi-billion-dollar losses at its US nuclear operation Westinghouse Electric.
The Japanese industrial giant is still recovering from the disastrous acquisition of Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.
Those huge losses came to light as the group was still reeling from revelations that top Toshiba executives had pressured underlings to cover up weak results for years after the 2008 global financial meltdown.
Its most recent results published in August revealed a loss of $8.8 billion in the last fiscal year, although it predicted it would swing back into the black this year.
The losses were a major embarrassment for a cornerstone of Japan Inc, which traces its history back as far as 1875 when the company started life as a telegraph factory in what is now Tokyo’s Ginza shopping district.
Did You ❤ ❤ this post? DROP A C.O.M.M.E.N.T ... spill TEA.... Easy on Shade #jaiyeorie
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