Toshiba will Reportedly Announce today that they've Chosen the Bain, SK Hynix, Apple Bid for its Memory Business
A week ago Patently Apple posted a report titled "Toshiba Signs Memorandum of Understanding with Bain Capital's Consortium for Toshiba Memory Corporation." Today a Korean news site is claiming that Toshiba has picked the Bain, Sk Hynix and Apple group to sell its memory unit to.
The Korea Herald reports today that "After three-month-long negotiations, Japanese conglomerate Toshiba selected a global consortium led by US private equity group Bain Capital to sell its memory business, according to news reports on Wednesday.
While Toshiba hasn't yet made an official announcement, the company is expected to announce the decision on its homepage later Wednesday.
Toshiba suddenly leaned towards the Bain group after the bidders offered a combined 2.4 trillion yen ($22 billion), including an additional 400 billion yen for research and development of the memory business." Patently Apple posted a report on this titled "The Bain, SK Hynix, Apple bid for Toshiba has been upped to $22 Billion as Decision Time Draws Nigh."
According to Japanese news reports, Bain is to own a 49.9 percent stake in the chip unit, while Toshiba keeps 40 percent. The remaining 10.1 percent is forecast to be owned by a Japanese entity.
In a report last week Patently Apple noted that "If the agreement is completed, it may exceed Apple's largest deal ever, the $3 billion acquisition of Beats Electronics LLC."
It should be noted that Bloomberg reported late yesterday that "Bain Capital was seeking more financial support from Apple Inc. as it tries to seal its acquisition of Toshiba Corp.’s memory chips business, according to a person familiar with the matter.
The U.S. buyout firm is now asking the iPhone maker for about $7 billion in capital, up from a previous agreement for about $3 billion, said the person, who asked not to be identified because the matter is private. The revised proposal would include about $1 billion for equity and $6 billion in debt, the person said, a part of a total bid of roughly $19 billion. Apple representatives did not immediately respond to requests for comment."
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