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Toshiba held a board of directors meeting on Aug. 31 to discuss competing bids for its semiconductor business

Toshiba had been planning to finalize its selection of a buyer for its semiconductor business during a meeting of its board of directors on Aug. 31, but no decision was made. The battle to acquire the Japanese conglomerate’s semiconductor business has grown more complicated as Apple from the US and Hon Hai (Foxconn) from Taiwan have jumped into the fray.

In a press release issued on Aug. 31, Toshiba explained that it “is in continuing negotiations with three consortia of potential purchasers.” “We haven’t even confirmed whether the board of directors actually met. Judging by the content of the press release, it would appear that the board convened but failed to reach a decision. There’s no information about what they’re going to do in the future, either,” said a source with SK Hynix.

A group of investors from South Korea, the US and Japan that includes American investment fund Bain Capital and South Korean semiconductor manufacturer SK Hynix updated their offer to include Apple, according to an Aug. 30 report by Japanese broadcaster NHK. When Toshiba seemed to be leaning toward a US-Japan consortium involving Western Digital (a partner of Toshiba), Bain Capital brought in Apple in an apparent bid to reset the equation.

The South Korea-US-Japan consortium has reportedly made a proposal that would secure the total sale price of 2 trillion yen (US$18.18 billion) requested by Toshiba by having Bain Capital and Toshiba each hold a 46% share and Apple provide a loan worth 300 billion yen (US$2.73 billion). The proposal also attempts to assuage concerns inside Toshiba about national wealth draining away from the country by making it possible for Japanese investors to acquire a greater share and take control of the company’s management at a later point.

Last month, Toshiba selected the South Korea-US-Japan consortium as its preferred negotiating partner for purchasing the semiconductor business, but it was unable to move forward with the deal because of the issue of SK Hynix’s participation in management and because of Western Digital’s opposition to the sale.

Hon Hai also set up a consortium with a Japanese public-private fund and the Japan Development Bank, and this new Japan-Taiwan consortium has joined the South Korea-US-Japan consortium and the Japan-US consortium as they battle to acquire Toshiba’s semiconductor business.

By Kim Jae-seop, staff reporter

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