Moscow, may 22 — “Lead. The economy is” Apple, Dell Technologies, Kingston Technology and Seagate plan to sell their shares in the chip maker memory Memory Toshiba Toshiba Corporation, reports The Wall Street Journal (WSJ), citing sources familiar with the situation.
In 2017, a division of Toshiba Memory it was bought by a consortium led by investment giant Bain 2 trillion yen ($18 billion). However, Toshiba has remained 40.2% of the shares voting. This proportion at Bain amounted to 9.9%. Shares in Toshiba Memory also acquired SK Hynix, Dell, Kingston, Seagate and Apple, but these companies do not have the right to vote.
For the assets of Toshiba Memory long fought Western Digital Corporation, which still operates jointly with Japanese company enterprise for the production of memory, inherited after buying SanDisk. Sale of assets to an investment consortium headed by Bain Capital was organized so that interests were taken into account and WDC and Toshiba, which wanted to retain operational control over the production of memory.
The sale of the units for the production of chips of memory allowed to solve the urgent problems, and most importantly — the company’s shares were able to stay in the quotation list of the Tokyo stock exchange.
Now Toshiba Memory is trying to reduce dependence on foreign majority shareholders, but because this year is preparing to redeem 38% of preferred shares from a number of companies.
According to the WSJ, Toshiba will redeem shares of Apple, Dell, Kingston and Seagate for about $4.5 billion in the framework of the financing plan in the amount of $11.8 billion proposed by Japanese banks. To close the transaction it is planned till the end of may 2019.
At the request of CRN to give comments on Toshiba Memory sent the following response: “with regard to external or internal requests, we do not make any comments about the details (timing, etc.), IPO or refinancing. We can only report that we prepare IPO”.
Meanwhile, Western Digital, which claimed to purchase the Toshiba Memory, confirmed plans to investment in a joint venture with the company the project factory K1, which Toshiba Memory is currently building in Kitakami (Iwate Prefecture, Japan).
The K1 plant will produce 3D flash memory to meet the growing demand for storage solutions for industries such as data centers, smartphones, and Autonomous vehicles.
It is expected that the construction of the plant K1 will be completed in autumn 2019. The joint capital investment of companies into equipment for the plant will begin production of a 96-layer three-dimensional flash memory in 2020.
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