Toshiba will have a hard time selling TMC without WD's consent
Yesterday Evertiq reported that Toshiba has signed a MoU with Bain Capital Private Equity LP (Bain), in a bid to negotiate a definitive agreement for the sale of TMC by the end of this month.
Western Digital has now issued a commented on Toshiba's statement regarding the transfer of its interests in the NAND flash-memory joint ventures operated with WD's SanDisk subsidiaries.Below follows Western Digital's statement "We are disappointed that Toshiba would take this action despite Western Digital's tireless efforts to reach a resolution that is in the best interests of all stakeholders. Throughout our ongoing dialogue with Toshiba, we have been flexible, constructive and have submitted numerous proposals to specifically address Toshiba's stated concerns. Our goal has been — and remains — to reach a mutually beneficial outcome that satisfies the needs of Toshiba and its stakeholders, and most importantly, ensures the longevity and continued success of the JVs. Furthermore, it is surprising that Toshiba would continue to pursue a transaction with a consortium led by Korea-based SK Hynix Inc. and Bain Capital Japan without SanDisk's consent, as the language in the relevant JV agreements is unambiguous, and multiple courts have ruled in favor of protecting SanDisk's contractual rights. We remain confident in our ability to protect our JV interests and consent rights." Western Digital's arbitration requests filed on May 14, 2017, and July 5, 2017, continue to move forward in the ICC International Court of Arbitration.