Apple holding up Toshiba memory sale


The remaining 2.7 trillion won will be invested in a new fund that will be set up by Bain Capital.

Toshiba's board agreed last week to sell the unit, the world's second biggest producer of NAND chips, to the Bain group although a formal signing has been delayed, with sources saying they did not expect it to be signed on Wednesday.

In addition, on SK Hynix's part, patent disputes can be easily avoided through collaboration with Toshiba Semiconductor which has fundamental technology for NAND flash memories. These companies will invest in the form of non-convertible preferred shares, according to Reuters.

The Korea-US-Japan Alliance which will acquire Toshiba Memory includes SK Hynix, Bain Capital, Toshiba, Hoya, Apple, Kingston, Seagate and Dell.

The Bloomberg article said: "If KKR is able to persuade Apple to switch sides at the last minute, it could upset a deal that had looked like it would end months of twists and turns in finding a buyer for Toshiba's prized asset".

Meanwhile, Chey Tae-won, chairman of the SK Group, embarked on a business trip to Japan with Park Jung-ho, president of SK Telecom on the day.

Western Digital filed a request for arbitration in May with the International Chamber of Commerce's International Court of Arbitration in an effort to block the sale of Toshiba Memory.

Western Digital's injunction is being sought with the International Court of Arbitration, where the California-based company, which argues no deal can be done without its consent, initiated proceedings against its partner earlier this year.

Just when we thought that we had reached a conclusion in the protracted sale of Toshiba's chip unit, Western Digital on Tuesday announced its plans to seek an injunction to block the deal. These banks have been pushing Toshiba to complete the deal as neither want the corporation to be delisted from the Tokyo Stock Exchange as a result of negative equity. Although is now strategically in the position to score the dale with Toshiba, it remains a mystery if the conglomerate will award the chip unit to the Bain-led group since there are other bidders at play.