Bain Capital aims to list Toshiba chip unit in 3 years

TOKYO: US private equity firm Bain Capital LP yesterday said it aims to list Toshiba Corp’s chip unit on the Tokyo Stock Exchange within three years, to cash in its investment after leading an US$18 billion (RM76 billion) 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, 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 US 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 said 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 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 yesterday that Bain hopes to maintain stability at the chip unit through contracts with Apple Inc, 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 said.

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 US$16 billion last year to acquire SanDisk, Toshiba’s chip joint venture partner since 2000.

“Western Digital remains an important JV partner,” Sugimoto said.

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