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Toshiba won't cancel $18 billion chip deal

Staff Writer |
Toshiba will not use the option of cancelling the $18 billion sale of its memory chip unit unless there is any “major material change” in circumstances.

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Toshiba was unable to complete the sale to a consortium led by U.S. private equity firm Bain Capital LP by the agreed deadline of March 31 as it was still waiting for approval from China’s anti-monopoly regulator.

Under the agreement, Toshiba now has the option to cancel the sale without forfeit.

Cancelling would give Toshiba the freedom to pursue alternative courses of action, such as renegotiating the sale or conducting an initial public offering - a move activist shareholders have urged Toshiba to consider.

“We will maintain our stance and wait (for Chinese regulatory approval) unless drastic changes occur,” Nobuaki Kurumatani told reporters. Toshiba aims to complete the sale as soon as possible, he said.

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