The offer of the consortium of investors of the Japanese government together with Bain Capital will allow the manufacturer to take 18,000 million dollars to cover its massive losses.

 

Toshiba has chosen to consortium of Japanese government investors and Bain Capital as the preferred bidder to acquire its chip business with the objective of closing an agreement worth about 18,000 million dollars next week, which will allow the manufacturer to take funds to cover its millionaire losses.

However, Western Digital , Toshiba’s chip business partner, has initiated legal action to prevent the sale of the unit and it remains to be seen how the resolution of this purchase agreement will be announced.

The Japanese consortium has offered around 2 billion yen ($ 18 billion), an offer less than 2.2 billion yen from US competitor Broadcom , chip maker, and its US partner Silver Lake.

Although the consortium has not fully convinced, many analysts have seen it as the most likely suitor, since would automatically obtain an implicit seal of approval from the Japanese government who is interested in keep key semiconductor technology under internal control.

In addition to Bain Capital, the group includes state-backed funds, the Innovation Network Corp of Japan and the Development Bank of Japan. Korean chip maker SK Hynix Inc. and the unit of Mitsubishi UFJ Financial Group Inc. central bank are in talks to offer financing.

On the other hand, Foxconn, the world’s largest contract electronics manufacturer, also submitted an offer clothed by Apple and the IT giant Dell.