Offering Additional 400B Yen

In repeated confusions, the “Korea-U.S.-Japan alliance,” including SK Hynix, has launched its counterattack by offering to provide 400 billion yen (US$3.71 billion) additionally.
In repeated confusions, the “Korea-U.S.-Japan alliance,” including SK Hynix, has launched its counterattack by offering to provide 400 billion yen (US$3.71 billion) additionally.

 

There are repeated confusions about the sale of Toshiba Memory, a memory chip business subsidiary of Japan’s Toshiba, until the last minute. As the so-called “new U.S.-Japan alliance” is highly likely to be a final preferred bidder, the “Korea-U.S.-Japan alliance,” including SK Hynix, has launched its counterattack.

Japan’s Sankei Shimbun reported on September 9 that the Korea-U.S.-Japan alliance made a final offer to provide 400 billion yen (US$3.71 billion or 4.2 trillion won) of research and development costs in addition to 2 trillion yen (US$18.57 billion or 21 trillion won) of acquisition costs. Toshiba recently began talks with the new U.S.-Japan alliance led by Western Digital of the U.S. and participated in by U.S.-based private equity fund, KKR & Co., the Innovation Network Corporation of Japan and Development Bank of Japan. However, the Korea-U.S.-Japan alliance made the great offer.

Sankei Shimbun said, “Under its latest offer, Bain Capital and SK Hynix offered to provide a combined total of around 567.5 billion yen (US$5.27 billion or 5.96 trillion won), while U.S.-based Apple and IT giants would provide 555 billion yen (US$5.12 billion or 5.8 trillion won). Toshiba would keep 250 billion yen (US$2.31 billion or 2.61 trillion won) in the business, while other Japanese companies would provide 27.5 billion yen (US$253.94 million or 287.2 billion won). Japanese major banks are expected to provide a total of around 600 billion yen (US$5.54 billion or 6.27 trillion won) in the way of preferred stock loans without stock and voting rights.” The voting share of Bain Capital in Toshiba Memory is 49.9 percent, Toshiba 40 percent and Japanese companies 10.1 percent. SK Hynix will not engage in management according to existing plans.

Toshiba will hold its board meeting on the 13th and confirm the final preferred bidder. The Korea-U.S.-Japan alliance aims to close the deal on September 14 and 15.

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