Toshiba has announced the signing of a memorandum of understanding (MOU) which would see the company's semiconductor business Toshiba Memory Corporation (TMC) sold to a consortium led by Bain Capital and including memory giant SK Hynix - and Western Digital, unsurprisingly, is unimpressed at the news.
Toshiba's plan to spin-off the bulk of its semiconductor operations - bar its image sensor business - was announced earlier this year following financial troubles including an accounting scandal which saw an exodus of top executives and a $35.9 million fine plus a disastrous entry into the US nuclear power market.
The spin-off, Toshiba explained, would still be partly Toshiba-owned but with 'an injection of third-party capital as a financial measure,' later clarified by the company as a sale of around 30 percent of the spin-off Toshiba Memory Corporation (TMC).
Things have not been going smoothly since then, however: Following rumours that the company was interested in bidding, Western Digital sought to block any sale of the spin-off under what it claimed was a right of first refusal granted to it through its acquisition of SanDisk which had entered into a joint venture with Toshiba on flash storage and related technologies.
As Toshiba proceeded with the sale, Western Digital became increasingly irate and eventually the two companies took to the courts in a move which caused Toshiba to miss its originally-scheduled deadline for the deal.
Toshiba is now claiming that the sale is proceeding, having signed a memorandum of understanding (MOU) which would see a consortium led by Bain Capital Private Equity LP and including memory giant SK Hynix acquire the shares of Toshiba Memory Corporation.