Due to the financial difficulty, Toshiba is in a hurry to look for buyers for their flash memory business. Finally, SK Hynix, one of the world’s biggest manufacturers of flash memory, along with US investment firm-Bain Capital, one of the largest such outfits in the nation, are joining in the business for themselves. During preliminary bidding, Foxconn, which is owned by Hon Hai Precision Industry out of Taiwan, outdid 2 billion yen bid, and they are even willing to pay for 3 billion yen. However, SK Hynix enlisted the help, while Bain Capital is looking for that help. Moreover, Bain Capital was also a potential bidder in the sale of Toshiba’s flash memory business.
SK Hynix’s strategy not only simply needs a handout from Bain Capital in return for shares of the business, but they want Bain Capital to invest a bit of their own money, and use their reputation in international business to help Hynix gain investments worldwide. Bain Capital’s influence in Toshiba is nothing to sneeze at, with Domino’s Pizza Japan, Japan Wind Development, and Skylark, the nation’s largest family restaurant; all of them have Bain’s money. Therefore, SK Hynix is hoping that it will be an advantage to gain new investment partners to help them become as fit as for taking over the business.
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However, at first SK Hynix must get the approval of the Japanese government and Toshiba before the deal can go through. SK Hynix is not the only one receiving the outside help to stay at the top of the bidding charts. Broadcom, a chip making outfit from the US, is taking a nearly similar position when teaming up with Silver Lake Partners, though their wallet aren’t as big as that of Bain Capital. Interestingly, Google and other big players also join the competition. The action will end in June, when Japanese government authorities and Toshiba altogether announce who win the bidding, or the preferable bidder, and officially open up the bidding.