Update on the Sale of Toshiba Memory Corporation

13-Sep-2017 Intellasia | BusinessWire | 12:30 PM Print This Post

— MOU Signed with Bain Capital—

TOKYO–(BUSINESS WIRE)–Toshiba Corporation (TOKYO:6502) (Toshiba) has entered into a memorandum
of understanding (MOU) with Bain Capital Private Equity LP (Bain), the
lead member of a consortium currently bidding to acquire Toshiba Memory
Corporation (TMC), memorializing the parties’ intent to negotiate a
mutually satisfactory definitive agreement for the sale of TMC by the
end of this month. The decision to enter into the MOU was made by
Toshiba’s Board of Directors at its meeting today.

As Toshiba stated in its August 31 announcement, “Update on the Sale of
Toshiba Memory Corporation,” Toshiba has been in continuing negotiations
with three consortia of potential purchasers of TMC: a consortium that
includes the Innovation Network Corporation of Japan, Bain and
Development Bank of Japan; a consortium that includes Western Digital;
and a consortium that includes Hon Hai. In the course of these
negotiations Bain has come forward with a new proposal. Toshiba’s Board
of Directors has determined to continue negotiations with the Bain-led
consortium on the basis of this new proposal, and the company will work
to expedite the conclusion of a stock purchase agreement by the end of
September. Toshiba hereby announces that it has accordingly entered into
a non-binding MOU with Bain. The signing of this MOU does not eliminate
the possibility of negotiations with other consortia.

“Toshiba intends to reach a definitive agreement that fully meets our
objectives at the earliest possible date,” said Dr. Yasuo Naruke, Senior
Executive Vice President of Toshiba. “The sale of TMC must promote
further growth of TMC’s memory business, and return Toshiba group to
positive equity.

Dr. Naruke further stated: “The memory business is highly time
sensitive. It requires timely investments, accelerated product
development, and the ability to quickly ramp-up large-scale production
capacity. TMC is now proceeding with a unilateral investment in
manufacturing equipment for the Fab 6 clean room at its Yokkaichi
Operations, and we aim to increase the output of 3D Flash memory at
Yokkaichi to approximately 90% of capacity in FY2018. Moving forward, we
will continue to make timely investments to expand operations to meet
growing market demand.”

Contacts

Toshiba Corporation
Kaori Hiraki, +81-3-3457-2100
Public
Relations & Investor Relations Div.
Media Relations Group
media.relations@toshiba.co.jp

 


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