Western Digital and Japan Investors Discussing Toshiba Unit Sale

Western Digital and Japan Investors Discussing Toshiba Unit Sale
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Western Digital said it’s discussing options related to the sale of Toshiba’s flash memory unit with state-backed fund Innovation Network of Japan and Development Bank of Japan, as well as the country’s government, according to Bloomberg.

The electronics conglomerate should negotiate with Western Digital first, said Mark Long, WDC CFO. Western Digital became Toshiba’s manufacturing partner in the flash-memory business when it acquired SanDisk for $15.8 billion last year. That investment is now under threat after Toshiba narrowed the list of contenders to a group that includes Western Digital’s rivals.

Taiwan’s Hon Hai, Korea’s SK Hynix and American chipmaker Broadcom have emerged as the lead suitors after proposing bids that topped Western Digital in the initial round of offers, according to people familiar with the matter. Toshiba is aiming to complete the sale of the chips unit by March 2018 to raise much-needed cash.