Toshiba Memory sale to be finalized within two weeks

Toshiba announced it finally received approval from China's anti-trust regulators for the sale of Toshiba Memory Corporation. A lot has been written about this subject over the past year or so, the main gist is that Toshiba saw itself forced to sell its NAND flash memory unit due to issues caused by other business units.

At the moment, Toshiba is no longer in desperate need of cash, so some investors were pushing the firm to cancel the deal. Gaining approval from Chinese regulators took so long that Toshiba is no longer contractually obliged to sell its memory unit to the Bain-led consortium. However, Toshiba isn't exploring alternatives and confirmed the deal is expected to close on June 1, 2018:

Toshiba Corporation (TOKYO: 6502) has announced that it today confirmed receipt of all required anti-trust approvals in respect of the sale of Toshiba Memory Corporation (hereinafter TMC).

On September 28 2017, Toshiba announced that it had entered into a share purchase agreement (hereinafter SPA) with K.K. Pangea (hereinafter Pangea), a special purpose company formed and controlled by a consortium led by Bain Capital Private Equity, in respect of the sale of all of the shares of TMC, and that it aimed to close the transaction as soon as possible. The parties today confirmed that all required anti-trust approvals have been granted, and that all conditions for the closing of the transaction are now satisfied. The parties will now take necessary procedures to close the transaction, which is currently expected to occur on June 1, 2018.

Toshiba Group’s consolidated forecast for FY2018, ending March 31, 2019, as announced on May 15, 2018 in “Toshiba Announces Consolidated Results for Fiscal Year 2017, to March 31, 2018”, and in “FY2017 Consolidated Business Results”, assume the completion of the sale of the Memory business by the end of 1Q of FY2018. Toshiba will promptly announce any matters related to this transaction that require further disclosure.