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Bain says Dell, other tech firms join its bid for Toshiba chip unit
September 15, 2017 / 5:06 AM / 10 days ago

Bain says Dell, other tech firms join its bid for Toshiba chip unit

A Dell gaming computer is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017. REUTERS/ Mike Blake/Files

TOKYO (Reuters) - Bain Capital, now in the lead to buy Toshiba Corp’s prized memory chip unit, said on Friday it has brought in Dell Inc and other tech firms as new members of its consortium to bolster its bid.

Toshiba said this week it has agreed to focus on selling the world’s No. 2 NAND producer to a group led by Bain and South Korean chipmaker SK Hynix Inc but it did not rule out a deal with other suitors including Western Digital.

Sources have said that the Bain group also included Apple Inc and the offer was worth 2.4 trillion yen ($22 billion), including a 200 billion yen investment in infrastructure.

The U.S. private equity firm said in a statement that in addition to Apple, other members also included Dell, memory product maker Kingston Technology and data storage firm Seagate Technology Plc “who will provide capital in a sign of industry-wide support for an independent Toshiba”.

It did not give a breakdown of how much each firm was prepared to invest.

Addressing opposition from Toshiba’s joint venture partner Western Digital, which argues any deal will need its consent, Bain said it would honour “all the contractual terms of the Western Digital joint venture”.

Reporting by Junko Fujita, Ritsuko Ando and Makiko Yamazaki; Editing by Muralikumar Anantharaman and Edwina Gibbs

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