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You are here: Home / Mobile Industry News / SK Hynix To Invest in Toshiba Sale
SK Hynix To Invest in Toshiba's Chip Unit
SK Hynix To Invest in Toshiba's Chip Unit
By Youkyung Lee Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
SEPTEMBER
27
2017
South Korean chipmaker SK Hynix Inc. said Wednesday that it will invest 395 billion yen ($3.5 billion) toward the purchase of Toshiba Corp.'s memory chip unit by a group of investors.

The board at South Korea's No. 2 semiconductor company approved the decision, which will help the South Korean chipmaker advance in a segment known as NAND flash memory chips.

SK Hynix is part of a group led by Bain Capital Private Equity that includes several Japanese and U.S. companies such as Apple, Dell, Kingston Technology and Seagate Technology.

SK Hynix disclosed other details about the deal, including how the U.S.-Japan-South Korea consortium will split the stake. It said SK Hynix and Bain Capital will control a combined 49.9 percent stake in Toshiba's memory chip unit. Toshiba will control 40.2 percent and Hoya Corp., a Japanese company, 9.9 percent.

The South Korean company plans to finance part of its investment via convertible bonds worth 129 billion yen, which could later be converted into common shares and give SK Hynix up to a 15 percent stake in Toshiba's memory chip unit.

The consortium was selected to buy Toshiba's computer chip unit for 2 trillion yen ($18 billion) last week, but the deal's future remains unclear because Toshiba's U.S. joint venture partner Western Digital opposes it.

Toshiba has been battered by massive losses related to its U.S. nuclear operations at Westinghouse Electric Co., which filed for bankruptcy earlier this year.

It said the deal would go through regardless of the legal wrangling with Western Digital.

The deal will be closed by the end of March 2018.

© 2017 Associated Press under contract with NewsEdge/Acquire Media. All rights reserved.

Image credit: iStock.

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