Toshiba Memory could receive additional investments of more than JPY 1tn by Bain Capital-led consortium until listing - translated
15 OCT 2017
The Bain Capital-led consortium that is acquiring Toshiba Memory from Toshiba [TYO:6502] will likely provide additional investments of more than JPY 1tn (USD 8.9bn) until the flash memory unit is listed, the Nihon Keizai Shimbun reported.
The Japanese-language report cited Yugi Sugimoto, managing director at Bain Capital’s Japanese unit, who said during an interview with the paper that the private equity fund is not planning to restructure Toshiba Memory, but provide support for its growth, noting that the additional investments would be above the roughly JPY 2tn acquisition fee for the flash memory unit. The current team of executives will be maintained, he said, although Bain will take an active approach to appointing outside directors, who will take a supervisory role. He added that he himself will become a director.
Sugimoto noted that the consortium will spare no expense in providing the support required for R&D and equipment, adding that it will make use of a variety of methods to raise funds.
Regarding Western Digital’s litigation against the deal for Toshiba Memory, Sugimoto said that even if the court rules wholly in favor of Western Digital, which is unlikely, the US-based memory company will only gain manufacturing equipment that is owned by a joint venture company that is a paper company. He went on to say that obtaining a manufacturing operation that has no employees will not likely be considered a victory for Western Digital, adding that he believes the two sides will be able to reach a settlement.