Toshiba Memory plans to buy back the shares held by Apple and Dell

US tech companies were formally part of a group led by Bain Capital that acquired the memory chipmaker from previous parent Toshiba Corp

Reports confirm that Toshiba Memory Holdings has recently announced it would be buying out the shares in the chipmaker held by Dell Technologies, Apple Inc and two other investors.

Sources familiar with the matter informed that Dell and Apple will be joining Seagate Technology and Kingston Technology to sell off their shares in Toshiba Memory for around 500 billion yen (US$4.5 billion). Together the companies have made a few hundred million on their investment and the agreement will be completed by May end this year.

Apparently, the US tech companies were formally part of a group led by Bain Capital that acquired the memory chipmaker from previous parent Toshiba Corp.

The refinancing plans of Toshiba comprises loans of ¥1 trillion from the three leading Japanese Banks and an investment of ¥300 billion from the Development Bank of Japan, which is wholly owned by Government of Japan.  Later this year or in early 2020, Toshiba Memory is aiming to get listed in Tokyo, allowing the company to access capitals from the public-equity market.

Sources mentioned that few weeks back Toshiba Memory Holdings had selected 12 Director candidates, including seven new Independent Directors for election to its Board of Directors. The new Board of the company would also raise the number of Independent Directors from seven to ten.

The company hopes that the new Independent Directors bring to the Board more diversity that would help in increasing the shareholder value as well as drive sustainable growth over the long term.

For the uninitiated, Toshiba Corporation is a Japanese multinational conglomerate based in Tokyo, Japan. The company deals in diversified services and products including electronic components and material, information technology and communications equipment and systems, power systems, household appliances, and industrial and social infrastructure systems.

Source Credit: https://telecom.economictimes.indiatimes.com/news/toshiba-memory-to-buy-stakes-held-by-apple-dell-wsj/69421565