The supplier of hard disks Western Digital has increased the offer on semiconductor business purchase. Earlier, for the principle business of Japan Company, the machine Toshiba Recollection, which develops and markets flash recollection chips, Western Digital offered in regards to $ 14 billion. Nowadays the offer is raised to $ 17.8 billion.
Three quarters of the amount Western Digital intends to provide convertible favored shares, which can be converted into ordinary securities in only a few years. Another quarter of this amount should be provided by the partners in the purchase in the individual of Japanese shareholders (INCJ and DBJ cash) with state participation.
Such a financing scheme isn’t very comfortable for Toshiba, because because of huge write-offs through the nuclear business, japan conglomerate recorded enormous losses and unfavorable equity, consequently of which the company was threatened with the withdrawal of shares from the exchange and huge financial problems.
Another obstacle to the sale of Toshiba’s semiconductor business to Western Digital is usually that such a transaction will require the approval of antitrust authorities, which implies that the process can drag on.
The Taiwanese Hon Hai (generally known as Foxconn), Southern Korean SK Hynix and Singapore Broadcom are trying to get the chip organization now. Chairman of the Plank of South Korean conglomerate SK Group, which include chip maker SK Hynix, will visit Japan next week to negotiate with the leadership of Toshiba on the probability of buying its semiconductor division.
Although the companies are engaged in the joint development of new semiconductor technologies, SK Hynix fears that an offer from a South Korean company may come across opposition from the Toshiba management. South Korean press, citing informed resources, reported that in the earliest spherical of trading SK Hynix given Toshiba a lot more than $ 9 billion in most stakes in its organization.
At a gathering with representatives of huge banks Sumitomo Mitsui Financial Group and Mizuho Financial Group, a representative of Toshiba explained that each of the potential customers offered no less than Western Digital. Creditors have confirmed their call for that Toshiba markets as possible in the near future, without delaying with a poor balance.
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