Published Date : Sep 14, 2017
Apple Inc. seems to have decided to put its weight behind Bain Capital’s bid to buy out Toshiba’s Corp.’s memory chip business, with the capital rumored to be about 3 billion. This significant chunk of financial support is in addition to the similar aids coming from Dell Inc., SK Hynix Inc., and Seagate Technology plc. The first three financial supporters helped Bain in convincing Toshiba into signing a memorandum of understanding this month. Now Apple has thrown its hat into the deal, which, if goes through, would be iPhone-maker company’s biggest deal ever, overshadowing its $3 billion acquisition of Beats Electronics LLC in 2014.
This support from Apple can also be seen as a bridge that will fill the gap left by the recent withdrawal of state-backed Innovation Network Corp. of Japan and the Development Banks of Japan, who faced litigation from Western Digital. Western Digital itself is a supplier of Apple, and hence the California-based company seems to be helping its ward.
For a number of months, Toshiba has been trying to sell-off its chips business in order to overcome its foray into the U.S. nuclear business, which failed to meet the expectations by a long shot. Now, Toshiba must raise the money by March 2018 in order to avoid getting its shares delisted from the Tokyo Stock Exchange.
It must be noted that Toshiba has been regularly missing on self-imposed deadlines lately. Having identified Bain as the bidder in June last year, the company had revealed on talks with three other bidding groups on August 31.