Western Digital CEO in Japan to finalise Toshiba chip deal - source
Western Digital Corp`s chief executive is in Tokyo to finalise an agreement to buy Toshiba Corp`s memory chip business, ending months of dispute over the auction, a person familiar with the matter told Reuters on Monday.
Toshiba is scrambling to sell its flash memory unit to cover losses from its bankrupt U.S. nuclear business Westinghouse.
A group including Western Digital, U.S. private equity firm KKR & Co and Japanese government investors are offering around 1.9 trillion yen ($17.3 billion) for the unit, separate sources previously told Reuters. The U.S. firm is offering 150 billion yen through convertible bonds, they said.
The group and Toshiba aim to announce a deal by Aug. 31 when Toshiba`s board meets, other people said on Monday.
Both Western Digital and Toshiba declined to comment. A KKR representative could not be immediately reached.
Some senior Toshiba executives had initially balked at Western Digital`s offer, but sources said on Friday that the U.S. firm took a conciliatory tack and decided not to seek a management role in the new business and limit its stake to no more than one-third even when it converts the bonds to equity.
Toshiba and Western Digital are the world`s second and third largest producer of NAND chips.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.