First Step for Sell-off

Toshiba approved the sell-off of its semiconductor subsidiary to a
Toshiba approved the sell-off of its semiconductor subsidiary to a "Korea-US-Japan Alliance" including SK Hynix in a temporary general shareholders meeting on October 24.

 

Toshiba in the process of rehabilitating its business approved an agenda to sell its semiconductor subsidiary to a "Korea-US-Japan Alliance" including SK Hynix, which is led by a US investment fund, in a temporary general shareholders meeting on October 24, NHK reported.

NHK said that the approval meant that Toshiba took the first step towards the sell-off of the semiconductor unit but it was too premature to say that the sell-off would be completed by March of next year.

The sell-off of Toshiba Memory requires approval by two thirds of shareholders. At the general shareholders' meeting, a decision to appoint directors including the reappointment of Tsunagawa Satoshi was resolved.

In order to realize the sell-off of Toshiba Memory, the deal has to pass the fair competition act of each country corresponding to the antitrust act of Japan and the alliance has to cooperate with Toshiba in the semiconductor business and address conflicts with US Western Digital against the sale of Toshiba’s semiconductor business to the Korea-US-Japan Alliance. Therefore, it is unclear whether or not the sale will proceed smoothly.

The sale of Toshiba Memory will bring 740 billion yen as sale proceeds after tax deduction.

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