Toshiba Says it Will Sell Memory Business to Consortium Led by Bain Capital

Financially struggling Toshiba Corporation of Japan reported yesterday that it’s entered into a memorandum of understanding (MOU) to sell its highly valuable Toshiba Memory Corporation (TCM) to U.S.-based Bain Capital Private Equity, the leader of a consortium currently bidding to purchase Toshiba’s memory-chip business, which is worth about $20 billion.

The Bain Capital consortium includes Bain, the Development Bank of Japan, and the Innovation Network Corporation of Japan. The signing of the MOU is non-binding, and doesn’t eliminate Toshiba’s consideration of other purchasers.

Dr. Yasuo Naruke, senior executive vice president of Toshiba, commented: “Toshiba intends to reach a definitive agreement that fully meets our objectives at the earliest possible date. The sale of TCM must promote further growth of TCM’s memory business and return Toshiba group to positive equity.”

Toshiba, which suffered from huge losses in investments in nuclear power plants, is said to wish to close the sale by the end of its financial year that ends in March 2018 in order to ensure it’s not in negative net worth, which could result in a delisting from the Tokyo Stock Exchange.

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