This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-41335004

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Toshiba sells chip unit for $18bn Toshiba to sell chip unit for $18bn to plug losses
(35 minutes later)
Toshiba has sold its prized semiconductor business to a group led by US private equity firm Bain Capital for around $18bn (£13.3bn). Toshiba has sold its prized semiconductor business to a group led by US private equity firm Bain Capital in a bid to keep its struggling business afloat.
The deal is designed to cover billions of dollars in losses racked up through Toshiba's US nuclear unit. The $18bn (£13.3bn) deal is designed to cover billions of dollars of losses incurred in Toshiba's US nuclear unit.
The Japanese firm was almost delisted this year after delaying the publication of its financial results.The Japanese firm was almost delisted this year after delaying the publication of its financial results.
In the end, it reported losses of $8.8bn for the last financial year. It said the deal, if approved, would ensure it remained public.
Toshiba is the world's number two chipmaker and its Toshiba Memory unit accounts for about a quarter of its revenue.Toshiba is the world's number two chipmaker and its Toshiba Memory unit accounts for about a quarter of its revenue.
Bain Capital has partnered with South Korea's SK Hynix Inc and brought in US buyers of Toshiba chips such as Apple and Dell to bolster its bid. Bain Capital has partnered with South Korea's SK Hynix Inc and brought in US buyers of Toshiba chips such as Apple and Dell in order to buy the division.
In a statement, Toshiba said the sale of Toshiba Memory would boost its finances by 740bn yen (£5bn) after taxes. However, there is uncertainty over whether rival bidder Western Digital will walk away from the deal amicably.
That would pull it out of negative shareholder equity, key to ensuring it remains a listed entity. The data storage firm - which runs a joint venture with Toshiba in the US - was tipped as favourite to buy the business as recently as this week.
It has previously taken legal action against Toshiba, arguing that the deal cannot happen without its consent.
A Western Digital spokesman told Reuters it had no immediate comment on the deal.
Plugging losses
Toshiba has been under pressure to clinch a deal in order to order to shore up its balance sheet by the end of its financial year next March.
In a statement, it said the sale of Toshiba Memory would boost its finances by 740bn yen (£5bn) after taxes. That would pull it out of negative shareholder equity, key to ensuring it remains a listed entity.
The firm has incurred billions of dollars of losses at its US nuclear unit Westinghouse, which filed for bankruptcy in March.
The business, bought in 2006, had suffered years of cost overruns at its reactors and a downturn in global demand for nuclear energy.
The problems led Toshiba to delay the release of its financial results in May, as it struggled to secure sign-off from its auditors.
It finally published them in August, reporting heavy losses of $8.8bn for the last financial year.