The Second Round Of Bidding Of The Toshiba Chip Business Ended On May 25

Author:OMO Release Date: 2017年5月26日


Bloomberg May 19 quoted a number of informed sources, said the second round of bidding of the Toshiba chip business ended on May 25, Broadcom and led by KKR a consortium is currently in a leading position.

One of the insiders said that Broadcom's offer is about 2.2 trillion yen (about 20 billion US dollars), and will not face too much regulatory review. The KKR lead consortium to bid 1.8 trillion yen (about 16.1 billion US dollars), and with the support of the Japanese government. The consortium includes the Japanese government-supported Industrial Innovation Agency (INCJ) and the Japan Development Bank (JDBJ).

Western data also want to join the KKR consortium, but in the holdings of shares failed to reach a consensus. People who is familiar with the matter said Western data was allocated less than 20% stake, and the company wants to take control. In addition, the use of Toshiba memory chips Apple is also considering whether to inject one or more bidders.

Taiwan Foxconn and South Korea's SK Hynix also intends to bid for the Toshiba chip business, Foxconn and even plans to spend 3 trillion yen (about 27 billion US dollars). But insiders say Toshiba may only consider other bidders with lower bids because of opposition from a Japanese and US government.

Of course, the sale of the transaction is not yet a foregone conclusion, the leading bidder in the future may also change. Damian Thong, an analyst at Macquarie Group, said: "No matter which company's joint bid with INCJ, regardless of the price level, may be the ultimate winner. If you do not join with INCJ, offer higher can not succeed. "

Informers say INCJ and JDBJ join the KKR consortium as a result of the Japanese Ministry of Economy, Trade and Industry (METI). As for the Western data, has not yet decided whether to join the consortium, or launched a separate bid. Western Digital is a partner of the Toshiba chip joint venture, which opposes Toshiba's chip sales business. Western data this week, said the International Chamber of Commerce has issued an arbitration proceedings, asked Toshiba to stop selling chip business.If you want to learn more information about microchip ic Distributor, please go to omoelec.com.

It was reported last month that Broadcom received financial support from three Japanese banks and private equity firms, Silver Lake Capital. People familiar with the matter said Japan's Mizuho Financial Group, Mitsui Sumitomo Financial Group and Mitsubishi UFJ Financial Group plan to provide about $ 15 billion in loans to Broadcom. While Silver Lake Capital will subsidize Toshiba's $ 3 billion through convertible bonds.

People familiar with the matter also said that Bain Capital also intends to bid for the Toshiba chip business, and may cooperate with SK Hynix. Nippon news reports that Bain Capital wants to buy 51% stake in Toshiba's chip business.

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