Toshiba signs $18b deal

Japan’s Toshiba Corp said on Thursday it had signed an $18 billion deal to sell its chip unit to a consortium led by Bain Capital LP, overcoming a key - albeit not its last - hurdle as it scrambles for funds to stave off a potential delisting.

The sale of the unit - the world’s second biggest producer of NAND chips - was agreed last week after a tortuous auction process but the signing was delayed because consortium member Apple Inc demanded new terms on chip supply, sources familiar with the matter have said.

The deal will see Toshiba reinvest in the unit and together with Hoya Corp, a medical technology firm that also makes parts for chip devices, Japanese firms will hold more than 50 per cent of the business - a keen wish of the Japanese government.

A Japanese state-backed fund and bank have also expressed their interest in investing in the future subject to certain conditions, Toshiba said in a statement.