Toshiba May Seek For an IPO For Its Memory Unit
Toshiba, which is expecting an antitrust approval for the sale of its memory chip unit to a Bain Capital-led consortium, is alternatively considering an IPO of its memory chip business.
The FT reports that Toshiba will seek for an IPO of its chip business if the agreed $18 billion sale fails to gain antitrust approval by the end of March.
Toshiba agreed last September to sell Toshiba Memory to a consortium led by Bain to cover billions of dollars in liabilities arising from now bankrupt U.S. nuclear power unit Westinghouse Electric Co LLC.
Initially, the Japanese conglomerate faced pressure to complete a sale, in order to cover its liabilities. But not the Japanese company has managed to raise 600 billion yen ($5.4 billion) with a new share issue to overseas funds late last year.
Some Toshiba investors have voiced opposition to the memory unit's sale, saying it was no longer necessary and that the board should consider an IPO instead.