Toshiba Corp. expects a delay in selling its memory chip unit Toshiba Memory Corp. to K. K. Pangea because it lacks the required antitrust approvals.
The seller reiterated its intention to complete the deal, but now anticipates a closing in or after April as opposed to a previous deadline of the end of March. Several activist shareholders oppose the deal, contending that it undervalues the business. These investors argue that should consider an IPO of the unit instead. The Japanese industrial conglomerate plans to buy back 40% of the chip unit under the deal, Reuters said.
The delay is not anticipated to impact Toshiba's forecast for the full-year 2017 results.
K. K. Pangea is a special purpose acquisition company formed by a Bain Capital Pvt. Equity LP-led consortium.