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South Korea: SK hynix joins Toshiba bid with Bain Capital

By  |  May 21, 2017

South Korean chip maker SK Hynix  and US private-equity firm Bain Capital plan to bid between $9 billion and $13.5 billion for more than half of Toshiba Corp.’s memory-chip business, according to a person familiar with the matter.

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    “Regarding the acquisition of management stake of Toshiba’s memory unit, we decided to join the final bid in partnership with a consortium,” the Korean chipmaker said in its regulatory filing Friday afternoon.

    SK hynix reportedly joined the consortium led by Bain Capital, which has set up a special-purpose company to acquire a 51 percent stake of Toshiba’s memory unit.

    Investment in part of the stake — rather than complete acquisition — could also help the consortium circumvent antitrust regulations.

    Japanese newspaper Nihon Geizai Shimbun estimated that the total investment volume of the special-purpose company would be a little more than 1 trillion yen ($8 billion) but it is yet unknown how much SK hynix will set aside.

    Bain Capital is expected to sound out the government-backed fund Innovation Network Corp. of Japan about joining as a small shareholder. If the local fund joins, the move might dispel the Japanese government’s concerns about technology leaks to foreign companies.

    Full Content: Asia Nikkei

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