Toshiba Chip Sale Talks Are Said to Stall On Payment Timing
Toshiba's credit risk will be hard to cut without the sale of its memory unit business. That's a warning from SMBC Nikko Securities which says a deal is needed to improve the debt picture. Toshiba's negotiations with at Bain Capital-led consortium have reportedly stalled. Bloomberg's Pavel Alpeyev reports on 'Bloomberg Daybreak: Asia.' (Source: Bloomberg)
Toshiba Corp.’s talks to sell its chips business to a consortium led by Bain Capital hit an impasse over the timing of payments for the business and governance issues, according to people familiar with the matter, casting doubt on the company’s ability to complete a deal quickly.
The Bain group wants to make cash payments after Toshiba resolves a legal dispute with partner Western Digital Corp., while Toshiba wants the money earlier, said the people, asking not to be named because the matter is private. Toshiba President Satoshi Tsunakawa said last week the company would hold talks with other possible acquirers because it hadn’t been able to reach final terms with the the Bain group, which had been designated the preferred bidder, without explaining the reasons. After a multi-billion writedown in its U.S. nuclear business, Toshiba needs to complete the chip unit sale by March or face delisting from the Tokyo Stock Exchange.