Toshiba denies report of suspension of chip unit sale process

The logo of Toshiba Corp is seen behind cherry blossoms at the company's headquarters in Tokyo Japan
The logo of Toshiba Corp is seen behind cherry blossoms at the company's headquarters in Tokyo Japan
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15 April, 2017

The report indicated that Apple wants to invest billions of dollars to obtain more than 20% stake to ensure a stable supply of memory chips for its iPhones. The Tokyo-based company is wary of Hon Hai's bid to take full control of the chips unit on its own because it anticipates Japanese and USA governments would object.

These concerns were raised in regard to Foxconn's participation in the auction, because of the company's links to China.

The memory chip segment is a prized possession of Toshiba, but they are trying to sell it off now because the company is still trying to recover from the multibillion-dollar loss caused by the Westinghouse debacle. The company also stated that it should be given exclusive negotiating rights, notes CNBC.

On Tuesday Toshiba warned it may not continue as a 'going concern.

More news: Maple Leafs beat Penguins to clinch final playoff spot

Toshiba has found itself in a tough spot financially recently, with the company recently admitting that its future is very much in doubt following its most recent financial report.

"It is not true Toshiba has put the chip sale process on hold", a Toshiba spokesman said.

Some small lenders have baulked at the offer as they have been offered other Toshiba assets as collateral, such as its group companies' shares and real estate. According to Japan's Mainichi Shimbun, potential buyers of world's second largest flash memory maker have been narrowed down to four bidders - SK Hynix, Taiwan's Hon Hai Precision Industry Co., the United States' Western Digital Corp., and private equity firm Silver Laker Partners.

SK Group Chairman Chey Tae-won has expressed his confidence in acquiring Toshiba's chip unit, implying that the group's chipmaking unit would take a different approach when the real race begins. Get twice-daily updates on what the St. Louis business community is talking about.


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