Govt-backed fund may take mi­nor­ity stake in Toshiba unit

New Straits Times - - World -

TOKYO: A state-backed fund may in­vest in Toshiba Corp’s mem­ory chip busi­ness as a mi­nor­ity part­ner — a move that would help the gov­ern­ment pre­vent a sale to bid­ders it deems risky to na­tional se­cu­rity, said sources.

Dis­cus­sions on a po­ten­tial in­vest­ment were, how­ever, at a very early stage and might not de­velop fur­ther as some peo­ple within the gov­ern­ment were con­cerned it could be seen as a pub­licly funded bailout, said one of the sources.

If the fund, the In­no­va­tion Net­work Cor­po­ra­tion of Ja­pan (INCJ), teamed up with a bid­der, that would give the suitor a ma­jor ad­van­tage as it would rep­re­sent a gov­ern­ment stamp of ap­proval, said the sources.

Trade Min­is­ter Hiroshige Seko has said the min­istry, which over­sees INCJ, has no plans to res­cue Toshiba.

Toshiba said it would not com­ment on specifics of the sale process. Chief ex­ec­u­tive Satoshi Tsunakawa said on Tues­day, how­ever, it would take na­tional se­cu­rity con­cerns into ac­count.

Sep­a­rately, a source said the gov­ern­ment-backed Devel­op­ment Bank of Ja­pan would be will­ing to lend sup­port. It was not im­me­di­ately clear what form that sup­port would take. Reuters

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.