Toshiba to meet shareholders with no chip unit deal signed | Reuters

CHIBA, Japan Japan's Toshiba Corp (6502.T) is expected to face the wrath of shareholders at its annual meeting on Wednesday after failing to sign a deal to sell its flash memory chip unit by a self-imposed deadline.The ailing Japanese conglomerate is rushing to sell the prized unit to cover billions of dollars in cost overruns at its bankrupt Westinghouse nuclear unit. It had promised to sign a definitive agreement with a preferred bidder by Wednesday's meeting.But the preferred bidder, a group led by Japanese government investors and including U.S. private equity firm Bain Capital, has not agreed on conditions of the deal, two sources familiar with the talks said

Reuters June 28, 2017 05:30:04 IST
Toshiba to meet shareholders with no chip unit deal signed
| Reuters

Toshiba to meet shareholders with no chip unit deal signed
 Reuters

CHIBA, Japan Japan's Toshiba Corp (6502.T) is expected to face the wrath of shareholders at its annual meeting on Wednesday after failing to sign a deal to sell its flash memory chip unit by a self-imposed deadline.The ailing Japanese conglomerate is rushing to sell the prized unit to cover billions of dollars in cost overruns at its bankrupt Westinghouse nuclear unit. It had promised to sign a definitive agreement with a preferred bidder by Wednesday's meeting.But the preferred bidder, a group led by Japanese government investors and including U.S. private equity firm Bain Capital, has not agreed on conditions of the deal, two sources familiar with the talks said. They requested anonymity as the negotiations were confidential.

Some Toshiba board members are also concerned about technology leaks to South Korean chip rival SK Hynix Inc (000660.KS), which plans to join the Bain group by providing financing, two sources said this week.

An ongoing legal dispute with Toshiba's chip partner Western Digital Corp (WDC.O) could also derail the $18 billion sale as the U.S. company has sought a court injunction to block any deal that does not have its consent.Toshiba's top executives are expected to apologise to shareholders for failing to present audited annual results after a prolonged accounting investigation at Westinghouse.

Last week, it flagged a net loss of around $9 billion for the year ended in March with negative shareholders' equity of around $5.2 billion, both worse than expected.Toshiba shares are set to be demoted to the second section of the Tokyo Stock Exchange from Aug. 1, the latest in a series of humiliating developments for a company in business for more than 140 years. (Reporting by Makiko Yamazaki, Taro Fuse and Kentaro Hamada; Editing by Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.