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Seagate to give $1.25 billion of $18 billion deal to buy Toshiba chip unit
September 28, 2017 / 9:55 AM / 23 days ago

Seagate to give $1.25 billion of $18 billion deal to buy Toshiba chip unit

(Reuters) - Seagate Technology PLC (STX.O) said on Thursday it would contribute up to $1.25 billion (935.49 million pounds)towards the purchase of Toshiba Corp’s (6502.T) chip unit by a consortium led by Bain Capital LP.

FILE PHOTO: A Seagate Tech external computer hard drive is shown in this photo illustration in Encinitas, California, U.S., January 23, 2017. REUTERS/Mike Blake

Toshiba said earlier in the day it had signed an $18 billion deal to sell the unit to the group, overcoming a key - albeit not its last - hurdle as it scrambles for funds to stave off a potential delisting.

Seagate also said it expects to enter into a long-term supply agreement with the unit, Toshiba Memory Corp.

Besides Seagate, Bain’s consortium includes Apple Inc (AAPL.O), South Korean chipmaker SK Hynix (000660.KS), Dell Inc and Kingston Technology.

Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza

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