SAN FRANCISCO — Toshiba is considering a public offering of its Toshiba Memory spinoff the proposed $18 billion sale to a consortium led by Bain Capital doesn't receive regulatory approval by March 31, according to reports.
The Financial Times reported that an IPO is one of the contingency plans being considered by Toshiba executives in the event that regulatory approval isn't granted by the end of the Japanese fiscal year. The report, which cites unnamed persons said to be familiar with Toshiba's plans, said some analysts and Toshiba shareholders favor IPO over the existing deal to sell to a group include Bain, Apple, Dell and others.
Toshiba has been working for nearly a year to sell its highly profitable memory chip business to help offset massive losses incurred by its U.S. nuclear power subsidiary. After several false starts, Toshiba struck a deal with the Bain-led group last September. However, the deal remains subject to the approval of regulators.
Toshiba is no longer under pressure to sell the spin off as quickly as possible after the company raised $5.4 billion in capital through an offering of new stock last year.
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