Why is Toshiba's Memory Chip Business so Valuable?

Toshiba names Bain as buyer

The Bain deal doesn't give Apple direct control over Toshiba's memory production, but it does put the company in a strong position when it comes time to buy more chips for its products. All because of the legal action launched by Toshiba's scorned JV partner in the chipmaking business, U.S. group Western Digital.

United States private equity firm Bain Capital will lead the global consortium, along with other investors such as Apple, which has reportedly invested at least $3bn.

Toshiba's sale has been complicated and delayed by its venture partner Western Digital, which wanted input into any business sale as partner in the chip business.

The Bain-led group was identified as a preferred bidder nearly three months ago, but the process has been delayed by lawsuits, government opposition and corporate indecision.

Things, however, fell through a day before Toshiba made the final decision. The transaction includes Toshiba's $3.1 billion investment in the unit, as well as stakes from Apple Inc.

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Students were being shuttled off the campus to Riddle Elementary School, where parents will be allowed to pick up their kids. Police in central IL say a teacher subdued a male student who shot and wounded another student in a high school cafeteria.

Toshiba said the deal is based on the premise that the sale would move forward even if courts impose an injunction against Toshiba in response to legal challenges brought by Western Digital, the parent company of Toshiba's long-time partner in the NAND flash business, SanDisk. A Western Digital spokesman declined comment.

Seagate, which is investing $1.25 billion for non-convertible preferred stock, doesn't want equity ownership, preferring the memory chip business to stay independent, according to a person familiar with the matter.

The auction has gone through dizzying twists and turns.

Toshiba on September 13 signed a memorandum of understanding (MOU) with the Bain Capital-led consortium for the sale of its memory chip business.

Bain Group revised its offer, by seeking financial support from Apple.

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