Tencent Technology News, last year, Japan's Toshiba and Bain Capital, the United States led the consortium reached an agreement to 18 billion US dollars in the sale of precious flash memory chip business. According to foreign media latest news, the transaction can not be expected by the end of March (the fiscal year end) was passed, but this will be good news for Toshiba, Toshiba is expected to get a higher selling price, or choose to go public.
According to a source quoted by Bloomberg News reported that the relevant government departments in China are currently reviewing Toshiba's transfer of flash memory business transactions, is still not approved, the other approved by the end of March is unlikely.
A tech industry analyst in Japan said Toshiba is unlikely to complete the deal by the end of March and that Chinese agencies are unlikely to implement a timetable favorable to Toshiba.
Toshiba is the world's second-largest manufacturer of flash memory chips, second only to Samsung Electronics, China is also the world's largest flash memory market, in addition to Japan, Toshiba's flash transactions also need in the EU, the United States, China, etc. access to antitrust agencies Approved by.
The Bain Capital consortium includes SK Hynix, another South Korean flash memory chip maker. According to sources, the Chinese government may worry that the acquisition will give Hynix a higher market share, which will be detrimental to market competition. In addition, the Chinese government may propose some restrictive conditions, such as freezing flash memory prices, or Toshiba spin-off of some businesses.
A spokesman for Toshiba said it is still working hard to complete the transaction review by the end of March.
Hurricanes created obstacles, in fact, long ago expected. Earlier, Toshiba hopes the acquirer does not include semiconductor companies, because it will increase the difficulty of the transaction through the audit. Unexpectedly, as a semiconductor giant Hynix, still participate in the merger as a contributor.
Prior to this, the United States Western Digital strongly oppose the Toshiba flash memory transactions, the main reason is that veteran Hynix will enhance the strength through the transaction. However, Western Digital later reached a settlement with Toshiba.
According to Bloomberg News and other media reports, if the transaction can not be completed by the end of March, Toshiba will have the right to withdraw the transaction, the company may in the future price hikes, or the listing.
The industry raised questions about Toshiba's $ 18 billion transfer of flash memory transactions. For example, the rush to sell this business was due to the need to end the insolvency by the end of March to avoid being delisted by the Tokyo stock market. However, Toshiba won other financing before, has temporarily got rid of danger of delisting.
In addition, the outside world questioned Toshiba's transfer price is too low. Sources said that if the open-market auction, Toshiba flash memory business will receive 22 billion to 240 billion US dollars, more than 180 billion US dollars 40 to 60 billion US dollars.
Toshiba is the inventor of flash memory chips, with excellent semiconductor technology, Toshiba transfer transactions also led to a number of companies bidding.
It is reported that in the last bid, Foxconn Group, the United States Broadcom and other companies also proposed the acquisition program, the acquisition offer exceeded 23 billion US dollars. However, under the interference of political factors (the Japanese government in the United States did not want to get Toshiba's semiconductor technology from the Foxconn group in China), TOSHIBA chose instead the highest Bain Capital consortium.
Toshiba will release earnings on Wednesday, analysts will also question the rationale for the transfer of flash memory business.
It is reported that Toshiba's current financial health is more healthy, capitalization through the issuance of new shares and sale of US nuclear power business, the other Toshiba flash memory business has become more valuable, in the first half of this fiscal year, this business contributed to Toshiba 88% Operating profit.
In addition before a number of media have reported that spin-off financing will also be Toshiba flash memory business an option.