A consortium led by Bain Capital LP has agreed to take over the chip unit of Toshiba Corporation for $18 billion to stave off a potential delisting for the unit. However, due to too many conflicting interests for the eight member group, a Tokyo news conference on the deal was cancelled as all the member want access to NAND technology. The sale of the world’s second biggest producer of NAND chips was agreed after a tortuous auction process but was delayed after Apple Inc. demanded new terms on chip supply.
According to Hideki Yasuda at Ace Research Institute, the potential deal has too many members to come to consensus but if the deal goes through it would reduce a lot of risks for Toshiba despite the initial agreement. The head of Bain Capital in Japan, Yuji Sugimoto pacified saying that the canceling of the news conference had no bearing on the contract.
Established in 1875, Toshiba employs around 153492 employees around the globe. Its two founders are Hisashinge Tanaka and Ichisuke Fujioka. However Toshiba has been under pressure for the past two years from the Japanese Government as it ended second consecutive year in negative net worth putting pressure on Tokyo Stock exchange.
About Bain Capital LP
An investment holding company that operates through its subsidiaries, Sankaty Advisors, LP; Brookside Capital Management, LLC; Bain Capital Ventures; Bain Capital Public Equity; Bain Capital Private Equity and Absolute Return Capital, LLC, Bain Capital LP was a firm founded in 1984 and is based in Boston, Massachusetts. It expands across other states in United States, Asia and Europe.