Under an attempt to comply with Japan's regulatory laws, a buying group made up of some of the largest names in the computer market is approaching a giant deal worth 18 billion
The hardware business can be very complicated - as is now demonstrated by the attempt to sell the development and production division of Toshiba In order to save the parent company from possible bankruptcy due to huge debts from its other failed fields of business.
News of the decision to sell the S-NAND Its high-quality and successful products came last year, and were verified with the announcement of a separate entity called TMC (Toshiba Memory Corporation) that will coordinate all operations in the field. Now TMC is close to an agreement with a diverse group of buyers, with its value approaching $ 20 billion - and leaves the right of decision in fact to the parent company Toshiba.
The acquisition group KK Pangea was formed to compete for the right to take control of TMC, consisting of Toshiba's own launch, investment by an investment fund called Bain Capital, an investment by SK Hynix of Korea, and a significant investment from an American acquisition group consisting of Apple, Del and-Seagate, All of which are current clients of storage chips from Toshiba.
Although the investments in favor of the acquisition transaction (along with additional loans that Pangea will take to complete the transaction) are distributed differently, Toshiba itself (along with another Japanese company) will be the ones who hold more than 50 control percentages in TMC if and when the deal is signed, to secure a situation. Where body control remains in Japanese hands and take precedence over choice of existing offerings - while US investors will have no control over TMC decisions, and will likely settle on agreements that give them one or the other preference in making chips full NAND Even in the future.
This expensive and prestigious acquisition will be debated and decided by Toshiba's shareholders during October, and will be finalized in advance of March 2018, assuming everything will work smoothly - though there are legal processes in place at Western Digital, the owner of SanDisk, which has several joint ventures. With Toshiba in the field of chip manufacturingNAND, In order to clarify the status of its rights in the large acquisition transaction of TMC.
WD and SanDisk want to make sure that the terms and rights they have enjoyed in the transactions Toshiba, And perhaps even to go in a more extreme direction and demand a block to the business acquisition of TMC, if they feel that they will experience any financial harm. So how will this whole saga end? See the next chapters.