The "dance of investors" around the assets of Toshiba Memory was one of the most in the semiconductor industry, since the parent corporation decided to find investors in order to cover losses arising in other areas of activity back in March 2017, and after all the approvals, this deal was put to an end in the spring of 2018. The assets of Toshiba Memory have long been fought over by Western Digital Corporation, which still has a joint venture with the Japanese company to produce memory, inherited after the purchase of SanDisk. The sale of assets to an investment consortium led by Bain Capital was organized in such a way that the interests of both WDC and Toshiba itself, which wanted to retain operational control over memory production, were taken into account. Investors pooled their money for a stake in Toshiba Memory about $ 18 billion, which was enough for the parent corporation to solve pressing problems, and most importantly, the company's shares were able to remain on the quotation list of the Tokyo Stock Exchange.
Foreign investors who got shares in Toshiba Memory were repeatedly mentioned in the profile news - in addition to Bain Capital, they included Apple, Dell, Seagate Technology, Kingston Technology and SK Hynix. The latter received a block of shares in the amount of 15%, but without the right to increase it over the next ten years from the date of the transaction. Moreover, the shares inherited by foreign investors did not receive voting rights, and the controlling stake remained in the hands of Japanese investors, which included investment banks. Everything was organized in such a way as to receive money from investors, and at the same time not take too many risks in terms of “squandering the national treasure”.
Now edition reports that Toshiba Memory has begun to prepare for the next "investment maneuver". This time around, the world's second-largest solid-state memory maker is gearing up for a public offering on the Tokyo Stock Exchange by March next year. To make its assets more attractive, Toshiba Memory is trying to reduce its dependence on foreign majority shareholders, and therefore this year is preparing to buy 38% of preferred shares from a number of companies like Apple and Dell. The total amount of the buyout will be $4,7 billion, while Toshiba Memory is going to borrow money from Japanese banks with almost a double margin. The rest of the money will be used to pay off old debts.
The question now is whether the foreign investors who backed the company last year would be willing to divest themselves of Toshiba Memory now that assets are cheaper and the outlook for the entire semiconductor industry is bleak. The mere information about buyback intentions can push Toshiba Memory's stock price up. One thing is clear - in the future the company is going to finance its activities through the placement of shares on the Tokyo Stock Exchange, where market mechanisms will determine their value.
Source: 3dnews.ru