Toshiba still aiming to sell chip unit

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Japanese giant Toshiba said will still be looking to sell its chip unit, even if it doesn’t get the required regulator approval by May.

This is despite earlier news saying Toshiba might consider dropping the deal altogether, if it doesn’t get the necessary approvals on time.

The company’s memory chip business is reportedly worth $18.6 billion. Earlier reports were saying Toshiba might close the deal by June.

“We’ve been making various efforts to close the deal in March,” Yasuo Naruke, the head of Toshiba’s chip unit, told reporters on Friday. But if that does not happen, the deal will close “at some point in April, May or June,” Naruke added.

Last year, Toshiba agreed to sell its chip business to Bain Capital-led consortium. The deal was a part of Toshiba’s effort to plug its financial holes that appeared after its nuclear unit failed.

US firm Bain Capital's acquisition is backed by a consortium of domestic and foreign investors, most notably Apple, Seagate and Dell, which will both provide financial support, as well as Toshiba itself, which will reinvest 350.5 billion yen into the new company.

In early January this year, Toshiba sold its nuclear group Westinghouse to Canadian asset manager Brookfield for $4.6bn deal. The group went bankrupt in March last year.

Image Credit: Toshiba