Here is the latest happening between Toshiba and Western Digital:

Toshiba (OTCPK:TOSBF, OTCPK:TOSYY) and Western Digital (NYSE:WDC) have entered talks to finalize the sale of Toshiba’s chip unit, which creditors want to happen this month to allow for regulatory approval time before the company’s potential Tokyo delisting in March.

Nikkei reports that a consortium containing Western Digital, KKR, Innovation Network Corp. of Japan, and the state-backed Development Bank of Japan has offered about $17.3B for the chip unit. 

Western Digital would contribute “hundreds of billions of yen” in the funding with no initial voting rights with the eventual plan to take a less than 20% stake. 

Western Digital is expected to complete its due diligence on the unit as early as next week. Toshiba wants to sign a deal as quickly as possible having already received its board’s blessing. 

Background: Western Digital claims its SanDisk acquisition last year gave it the right to approve the sale of the partnered chip unit, which the companies are currently fighting out in court. 

The continued delays have hurt Western Digital’s business and have Toshiba running out of time so a deal could finally happen.

Western Digital shares are up 3.01%.   

By: DocMemory
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