Toshiba Selects Japan-U.S. Consortium As Preferred Buyer For Memory Business
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Toshiba has selected a consortium as their preferred bidder in the sale of Toshiba's memory business. The consortium is led by the Innovation Network Corporation of Japan, an investment partnership between the Japanese government and 26 Japanese corporations. Toshiba hopes to have an agreement in place in time for their June 28 annual shareholder meeting and to close the deal by March 2018.
Besides the Innovation Network Corp. of Japan (INCJ), the consortium also includes the Development Bank of Japan as well as Bain Capital Private Equity. INCJ is a public-private investment company owned by the government and 19 private corporations; it was established in 2009 with the purpose of revitalizing industry in the country. The company played a key role in establishment of Japan Display Inc. (JDI), which absorbed LCD divisions of Sony, Toshiba and Hitachi. Development Bank of Japan is an investment and financial services organization that is expected to be privatized eventually, but is currently used to fund everything from reinforcing competitiveness of enterprises to disaster relief. For Bain Capital Private Equity a partial acquisition of Toshiba's memory business would be the first investment in semiconductors as previously the company focused primarily on software and services (e.g., Symantec, Myob, etc.). From reports, it appears that Bain itself is being further backed by none other than Toshiba's rival in the memory business, SK Hynix.
|Investments Planned to be Made by Members of the Consortium|
|Name||Investment in ¥||Investment in $|
|Bain Capital Private Equity||~¥425 billion||~$3.806 billion|
|SK Hynix (will invest with Bain Capital)||~¥425 billion||~$3.806 billion|
|INCJ||~¥300 billion||~$2.687 billion|
|Mitsubishi UFJ Financial Group (will invest with INCJ)||~¥550 billion||~$4.927 billion|
|Development Bank of Japan||
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