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  >  Tokyo  >  Toshiba Corp    6502   JP3592200004

TOSHIBA CORP (6502)
Mes dernières consult.
Most popular
  Report  
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Toshiba Revives Talks for Chip Unit Sale -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/11/2017 | 08:48am CEST
By Takashi Mochizuki 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (August 11, 2017).

TOKYO -- Toshiba Corp. said it has reopened talks with Foxconn Technology Group and Western Digital Corp. over selling its memory-chip unit, erasing a Japanese-led group's status as the preferred buyer in a deal potentially worth $20 billion.

The disclosure suggested the troubled industrial conglomerate was struggling to close the deal despite urgent time pressure to find a buyer and get regulatory approval. Toshiba has said it needs to sell the unit to bring its shareholder equity back into positive territory by the end of its fiscal year in March 2018. Otherwise, its shares would be delisted under Tokyo Stock Exchange rules.

In June, Toshiba said it had selected a consortium led by Innovation Network Corp. of Japan, a fund backed by the government, as the preferred bidder. On Thursday, Toshiba Chief Executive Satoshi Tsunakawa revised that description, saying: "In addition to the consortium, we are also in talks with Western Digital and Hon Hai" Precision Industry Co., the formal name of Taiwan-based Foxconn.

As of June 30, Toshiba's shareholder equity -- its assets minus liabilities -- stood at minus Yen504 billion ($4.6 billion), mainly stemming from losses on U.S. nuclear power plant projects handled by a now-bankrupt Toshiba subsidiary, Westinghouse Electric Co.

In a rare piece of good news, Toshiba said Thursday that its auditor had given qualified approval to its financial statements after disputes over accounting for the Westinghouse losses.

Analysts and people involved in the chip-unit deal say it could raise Yen2 trillion ($18 billion) or significantly more because of the popularity of the unit's NAND flash-memory chips for computers, smartphones and game devices. One major obstacle is a legal challenge by Western Digital, a U.S. company with which Toshiba jointly operates Japan-based factories making the NAND chips.

Western Digital says it has veto rights over a chip-unit sale. Toshiba says that isn't true, and the two sides are headed for international arbitration.

Inside Toshiba, some have argued that Toshiba should bury the hatchet with Western Digital and sell the chip unit to the U.S. company, while others say Foxconn, a technology giant that assembles Apple Inc.'s iPhones, is the best choice because it is offering more money, according to people familiar with the deliberations.

Meanwhile, talks with the consortium that used to be the preferred bidder have stalled, in part over issues of control. The consortium includes Bain Capital of the U.S. and SK Hynix Inc. of South Korea. The Wall Street Journal reported in July that SK Hynix, which initially said it would only lend money to back the deal, actually had plans to acquire an equity stake in the chip unit. That would give the South Korean company a good look at Toshiba's technology, contradicting hopes of some in the Japanese government that the technology wouldn't leak overseas.

Even if Toshiba made a deal today, it could still take six months or more to receive clearance from antitrust authorities in major countries.

"We are very aware that the schedule is getting very tight, but we will do our best in completing the deal by March next year," Mr. Tsunakawa said.

Some analysts have suggested that Toshiba should call off the sale and consider using the chip unit's profits and the sale of other assets to bring shareholder equity back into the black. The chip unit accounted for more than one-fifth of Toshiba's revenue in the April-June quarter, and without the unit's Yen90 billion ($820 million) in operating profit Toshiba would have fallen into the red in operating profit.

However, Mr. Tsunakawa repeatedly told reporters that selling the chip unit was the only path he could think of for Toshiba to survive.

Write to Takashi Mochizuki at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
FOXCONN TECHNOLOGY CO LTD --End-of-day quote.
WESTERN DIGITAL -1.25% 87.39 Delayed Quote.8.80%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TOSHIBA CORP
05/22TOSHIBA : World's first 14 TB server HDD joins Toshiba's enterprise and consumer..
AQ
05/22GLOBAL ADVANCED VISUALIZATION MARKET : Strategic Assessment of Evolving Technolo..
AQ
05/21TOSHIBA : Go Rentals launches retail hardware as a service in South Africa with ..
AQ
05/18Beijing official says Qualcomm-NXP deal looking more optimistic - WSJ
RE
05/18BEIJING OFFICIAL SAYS QUALCOMM-NXP D : Wsj
RE
05/18TOSHIBA CORPORATION : - Deployment of the Toshiba Next Plan
AQ
05/18TOSHIBA : Regarding Consummation of the Transaction for the Sale of Toshiba Memo..
AQ
05/18TOSHIBA : China ends US sorghum anti-dumping probe, OKs Toshiba deal
AQ
05/18TOSHIBA : Bill Targets Chinese Deals -- WSJ
DJ
05/17WESTERN DIGITAL : Toshiba's chip sale to consortium wins regulatory approval
AQ
More news
News from SeekingAlpha
05/23MICRON TECHNOLOGY : Floating Gate Just Floats Away 
05/18PayPal To Acquire iZettle For Strategic Expansion 
05/17Government Borrowing Escalates, EU May Protects Companies Doing Business With.. 
05/17WALL STREET BREAKFAST : Treasury Yields Keep Climbing 
05/17China approves Toshiba chip unit sale 
Financials ( JPY)
Sales 2019 3 926 B
EBIT 2019 -
Net income 2019 1 154 B
Finance 2019 805 B
Yield 2019 0,14%
P/E ratio 2019 1,78
P/E ratio 2020 12,36
EV / Sales 2019 0,32x
EV / Sales 2020 0,22x
Capitalization 2 061 B
Chart TOSHIBA CORP
Duration : Period :
Toshiba Corp Technical Analysis Chart | 6502 | JP3592200004 | 4-Traders
Technical analysis trends TOSHIBA CORP
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 377  JPY
Spread / Average Target 19%
EPS Revisions
Managers
NameTitle
Nobuaki Kurumatani Chairman & Chief Executive Officer
Satoshi Tsunakawa President, Chief Operating Officer & Director
Naoto Nishida Senior Managing Executive Officer
Yasuo Naruke Director & Representative Senior Executive VP
Kouichi Ikeda Independent Outside Director
Sector and Competitors
1st jan.Capitalization (M$)
TOSHIBA CORP-2.47%18 819
GENERAL ELECTRIC COMPANY-12.55%123 158
3M COMPANY-14.28%117 949
SIEMENS0.16%115 706
HONEYWELL INTERNATIONAL-1.87%113 025
ILLINOIS TOOL WORKS-10.26%50 157