Japanese electronics manufacturer, Toshiba Corp (6502.T) wants to raise at least 1 trillion yen ($8.8 billion) by selling most of its flash memory chip business.
This move is to create a buffer for any fresh financial problems, a source with direct knowledge of the matter said
The beleaguered conglomerate was pressured to abandon an initial plan to sell just under 20 percent by its main creditor banks which are worried about potential writedowns that may come on top of $6.3 billion hit to its U.S. nuclear unit, financial sources also said.
Toshiba said last week it is now prepared to sell a majority stake or even all of its chip business, the world’s biggest NAND chip producer after Samsung Electronics Co Ltd (005930.KS), also rocked by the emergence of fresh problems at its Westinghouse unit that have delayed the release of earnings.
The company has not decided on the size of the stake to be sold, preferring to focus on the amount that can be raised but would like to retain a one-third holding as that would give it a degree of control over the business, the source with direct knowledge said.
A Toshiba spokeswoman said the company cannot comment on the specifics of the sale process. Sources declined to be identified as they were not authorized to speak to the media, Reuters reports.