The Japanese technology concern Toshiba completed the 18-billion-dollar sale of its memory chip business to consortium led by US private equity firm Bain Capital. The end of the deal, which initially had to happen in March, was postponed due to the continued investigation of the case by the Chinese antitrust authorities.
Last month, however, China gave permission to finalize the deal.
Last year, the consortium led by Bain Capital won the long-running and highly contested battle for Toshiba Memory chips, the world’s second-largest chip maker NAND.
Toshiba has announced the sale business after bankruptcy of its US Nuclear Power Plant Westinghouse, which put the company in a state of crisis.
The consortium includes the South Korean chip maker SK Hynix, Apple, Dell Technologies, Seagate Technology and Kingston Technology.
Toshiba’s shares have now been transferred to K.K. Pangea, a purpose-built company controlled by the consortium and under Bain Capital’s umbrella. Under the terms of the deal, Toshiba has been able to repurchase 40.2 percent of common stock, which gives the tech giant voting rights in Pangea.
The unit is no longer under Toshiba’s majority rule, however, Toshiba says the new company is “expected” to become an affiliate in the future.
“Toshiba has granted each of Innovation Network Corporation of Japan and Development Bank of Japan, both of which have expressed interest in investing in Pangea, instruction rights for 16.7 percent of its voting rights”, said the Japanese technology concern.