If other options fail, Toshiba could do IPO for its memory unit

Posted on Tuesday, January 23 2018 @ 13:57 CET by Thomas De Maesschalck
Toshiba logo
Toshiba's saga continue and now there's word that the Japanese conglomerate is considering an IPO of its memory unit if the $18 billion sale to a Bain Capital-led consortium doesn't clear regulatory approval by the end of March.

The Financial Times wrote on Monday that Toshiba is looking at various contingency plans, and notes that Toshiba is no longer under severe pressure to complete a sale. The firm recently issued 600 billion yen ($5.4 billion) in fresh shares and is free to walk away from the deal if it doesn't win antitrust approval by March 31.
Toshiba agreed last September to sell Toshiba Memory, the world’s second-biggest producer of NAND chips, to a consortium led by Bain to cover billions of dollars in liabilities arising from now bankrupt U.S. nuclear power unit Westinghouse Electric Co LLC.

But the Japanese conglomerate no longer faces the pressure it once did to complete a sale, after raising 600 billion yen ($5.4 billion) with a new share issue to overseas funds late last year, which with tax write-offs gives it sufficient funds to cover its liabilities.
FT also wrote that some analysts and Toshiba shareholders favor an IPO over the existing deal.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



Loading Comments