Earlier this year, Toshiba shareholders gave the go-ahead for the sale of the memory business; Toshiba is the world's second largest producer of NAND flash memory — behind Samsung. And last week, the board agreed to sell the unit to the Bain consortium.
After the Toshiba Memory Corporation (TMC) shares are transferred to the consortium's special purpose acquisition company Pangea, Bain and TMC managemnet will lead the "business operations to secure continuous growth," Toshiba said.
The U.S. investors will not acquire any common stock or voting rights over TMC. In addition, SK Hynix will be "firewalled" from accessing TMC's proprietary information and will not be allowed to own more than 15 percent of the voting rights in Pangea or TMC for 10 years. SK Hynix is a competitor of TMC.