Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  KOREA EXCHANGE  >  SK Hynix Inc    000660   KR7000660001

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Bain Capital aims to list Toshiba chip unit in three years

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/05/2017 | 04:15pm CEST
Bain Capital LP Managing Director Yuji Sugimoto speaks during a news conference in Tokyo

U.S. private equity firm Bain Capital LP on Thursday said it aims to list Toshiba Corp's (>> Toshiba Corp) chip unit on the Tokyo Stock Exchange within three years, to cash in its investment after leading an $18 billion (37.90 million pounds) acquisition of the business.

U.S. private equity firm Bain Capital LP on Thursday said it aims to list Toshiba Corp's (>> Toshiba Corp) chip unit on the Tokyo Stock Exchange within three years, to cash in its investment after leading an $18 billion (37.90 million pounds) acquisition of the business.

Bain, whose consortium signed the purchase deal last week, also said it hopes to settle legal disputes over the transaction at an early stage with Western Digital Corp (>> Western Digital), Toshiba's joint venture partner.

Toshiba aims to complete the sale by the end of its fiscal year in March. It plans to use the proceeds to plug a hole in its balance sheet caused by the bankruptcy of its U.S. nuclear power subsidiary, and save itself from potential delisting.

With the clock ticking, Bain filed for antitrust approval in China the day after signing, a person familiar with the matter said on Wednesday.

Several other sources told Reuters that the strategic nature of the chip industry for China and political complications - including currently tense relations with South Korea, and the presence of South Korea's SK Hynix Inc (>> SK Hynix Inc) in the consortium - could see a lengthy process drawn out even further.

In the first news conference since the signing, Yuji Sugimoto, head of Bain Capital in Japan, told reporters on Thursday that Bain hopes to maintain stability at the chip unit through contracts with Apple Inc (>> Apple), a major client and member of the buyout consortium.

"We have already made (antitrust) filings for regulatory approvals globally. We are making utmost efforts to close the deal by the end of March," Sugimoto told reporters.

The sale, however, faces legal challenges from Western Digital, which offered a rival bid and is seeking an injunction to block any deal that does not have its consent.

Western Digital paid some $16 billion last year to acquire SanDisk, Toshiba's chip joint venture partner since 2000. It sees chips as a pillar of growth and so is keen to keep the business out of the hands of rival chipmakers.

"Western Digital remains an important JV partner," Sugimoto said. Bain "will help solve the legal disputes (between Toshiba and Western Digital) and help them grow together."

But he said Bain aims to close the deal even if the disputes are not resolved beforehand.

Toshiba has said the joint venture is a tiny portion of the chip unit and that it can sell the business without the joint venture. Western Digital disagrees.

For Bain, the deal is part of an aggressive expansion strategy in Japan. Only days after the Toshiba deal, Bain announced a $1.4 billion bid for Japan's third-largest advertising agency, Asatsu-DK Inc (>> Asatsu-DK Inc), in one of the largest buy-outs in the country this year.

(Reporting by Makiko Yamazaki and Junko Fujita; Writing by Miyoung Kim; Editing by Christopher Cushing)

By Makiko Yamazaki and Junko Fujita

Stocks treated in this article : Apple, Asatsu-DK Inc, Toshiba Corp, SK Hynix Inc, Western Digital
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SK HYNIX INC
10/19 SK HYNIX : Patent Application Titled "Calibration Circuit and Calibration Appara..
10/19 SK HYNIX : Patent Issued for Delay Circuit (USPTO 9787296)
10/19 SK HYNIX : Patent Issued for Data Storage Device and Method (USPTO 9785584)
10/19 SK HYNIX : Patent Issued for Data Storage Device and Operating Method (USPTO 978..
10/19 SK HYNIX : Patent Issued for Semiconductor Memory Device Including Pillars (USPT..
10/19 SK HYNIX : Patent Issued for Semiconductor Device with Air Gaps and Method for F..
10/19 SK HYNIX : Patent Issued for Image Sensing Device (USPTO 9787921)
10/19 SK HYNIX : Patent Issued for Impedance Calibration Circuit (USPTO 9787287)
10/19 SK HYNIX : Patent Issued for Memory Device Repairable by Soft and Hard Repair Op..
10/19 SK HYNIX : Patent Issued for Methods of Forming Fine Patterns Including Pad Port..
More news
News from SeekingAlpha
10/17 Micron moves lower as CLSA sees accelerating DRAM supply in 2018
10/05 U.S., South Korea revisiting trade deal slammed by Trump
10/04 REUTERS : Bain files for Toshiba antitrust approval in China
09/28 Seagate contributes $1.25B to Toshiba deal; SK Hynix will act as limited part..
09/28 WALL STREET BREAKFAST : Toshiba Signs Off On Chip Unit Sale
Financials ( KRW)
Sales 2017 29 333 B
EBIT 2017 13 301 B
Net income 2017 10 480 B
Finance 2017 4 418 B
Yield 2017 1,23%
P/E ratio 2017 5,61
P/E ratio 2018 5,37
EV / Sales 2017 1,86x
EV / Sales 2018 1,53x
Capitalization 59 114 B
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 36
Average target price 91 817  KRW
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Sung-Wook Park Vice Chairman & Chief Executive Officer
Joon-Ho Kim Co-President, Director & Head-Management Support
Myung-Young Lee Senior Managing Director & Head-Finance
Sang-Seon Lee Senior MD & Head-Production and Technology
Seung-Ho Pi MD & Head-Research and Development
Sector and Competitors
1st jan.Capitalization (M$)
SK HYNIX INC52 257
TAIWAN SEMICONDUCTOR MFG. CO. LTD.--.--%203 790
INTEL CORPORATION10.97%189 981
NVIDIA CORPORATION85.10%118 140
BROADCOM LIMITED38.03%99 645
TEXAS INSTRUMENTS28.04%94 232