4/3/2018, 12:00 PM (Source: TeleTrader)
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Toshiba vows to go ahead with chip division sale

Toshiba Corp.'s chief executive Nobuaki Kurumatani stated on Tuesday that he is determined to execute the sale of the flash memory drive production to a consortium led by Bain Capital Private Equity LP despite a recent setback. The new head of the ailing electronics giant brushed off investors' calls to walk away from the transaction and added the contingency option would only be used in case of "big material changes."

Regulatory hurdles in China pushed the process past the deadline set in the agreement, opening the possibility for abandoning the divestment or initiating a renegotiation. Bain Capital Investors Llc would assume control of the target entity through special purpose firm KK Pangea.

If the most populous nation's competition watchdog blocks the deal for Toshiba Memory Corp., the company would have to reconsider the agreement, Kurumatani acknowledged. He vowed to center the overhauled business on data services and reposition in the market within five years, after leaning on the chip unit for a vast majority of income.

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