2017.09.1804:00:00UTC+00​Toshiba Reportedly Looking to Finalize Chip Deal with Bain

Toshiba is reportedly aiming to close an agreement to sell its memory chip business to a consortium led by Bain Capital at a September 20 board meeting despite opposition from its joint venture partner Western Digital Corp., according to sources.

The Japanese Company's effort faces opposition because the Bain group now has several Western Digital rivals, such as Seagate Technology Plc, Kingston Technology Co. and SK Hynix Inc., sources said.

For months, Toshiba has been in discussion to sell its chips business and pay for the writeoffs of its now bankrupt U.S. nuclear business, Westinghouse. The firm needs to raise the required amount by March in order to prevent its shares from getting delisted from the Tokyo Stock Exchange. The bidding round has been complicated by the legal action from Western Digital, which was it should have the power to block any sale due to its partnership with Toshiba in the prized chip business. The firm disputes this claim and sued Western Digital for over $1 billion for interfering in the sale process.

A spokesperson for Toshiba said the company's board might not be able to finalize a deal this week. If not, the issue will be reconsidered in the following week.