Toshiba gets earnings report extension, faces delisting risk
- Author: Zachary Reyes Jun 23, 2017,
Jun 23, 2017, 16:39
Toshiba aims to reach a final agreement on the sale of its flash memory unit by the end of June.
Toshiba said it believed that the consortium "presented the best proposal, not only in terms of valuation, but also in respect to certainty of closing, retention of employees, and maintenance of sensitive technology within Japan". With the US -based company tired of the involvement of direct rival SK Hynix, the government-led alliance will have to negotiate with Western Digital, either asking it to drop the case or trying to include the it the consortium.
Western Digital's offer had not found favour on price and because the U.S. firm wanted to take control of the unit, he said, adding that he expected executives from Toshiba to still be running operations after the sale.
Toshiba was not immediately available for comment.
Toshiba's board of directors chose the bid for Toshiba Memory Corp., totaling about 2 trillion yen ($18 billion), from the consortium of Innovation Network Corp. of Japan, Bain Capital Private Equity and the Development Bank of Japan.
SK Hynix, which is relatively weak in NAND flash memory chips, has said it has joined the group because it sees new business opportunities.
Toshiba Corp 6502.T plans to ask regulators for an extension for filing its annual financial statement on Friday, the Yomiuri daily reported.
Toshiba twice postponed nine-month earnings before it released unaudited results in April, and warned last month it likely lost 950 billion yen ($8.6 million) in the fiscal year that ended in March.
Tokyo-based Toshiba, whose USA nuclear unit Westinghouse Electric Co. filed for bankruptcy protection in March, said Friday it received an extension of an earlier June deadline to give its earnings report for the fiscal year that ended in March.
It has yet again delayed filing an earnings report - the sixth time since 2015 it has done so.
Failure to meet the end-June deadline without an extension would have put the troubled Japanese conglomerate's stock exchange listing in further jeopardy.