Japan’s Toshiba Corp. has decided to sell its flash memory business to a consortium led by U.S. equity firm Bain Capital and heavy with technology giants like Apple, Dell, and SK Hynix Inc., according to multiple media on Wednesday.

Citing a source, Kyodo News reported that Toshiba held a board of directors meeting on Wednesday and approved the plan to sell its chip unit to a South Korean-U.S.-Japanese consortium that has been in talks with the troubled Japanese company over the sale after signing a memorandum of understanding last week.

According to the news agency, the total sales price amounts to 2.4 trillion yen ($21.5 billion). The consortium also reportedly comprises Apple Inc. and Dell Inc.

Japan’s daily Sankei Shimbun also reported that 49.9 percent of voting rights is held by Bain Capital, 40 percent by Toshiba, and 10.1 percent by a Japanese company, allowing more than a majority of 50.1 percent to be owned by Japan. The Asahi Shimbun reported that optical instrument maker HOYA is also considering taking part in the investment.

During Toshiba’s board of directors meeting, Kyodo News reported that some officials lent an ear to a consortium led by U.S. Western Digital and its new proposal presented at the last minute but it faced strong internal opposition from Toshiba officials.

The board’s decision on Wednesday was made 7 months after it expressed intension to sell its flash memory business.

Japanese media also reported that Toshiba’s talks with the Korean-U.S. Japanese consortium may have been challenged due to the issue involving Western Digital and its lawsuit that has been raised against the Japanese company to prevent the memory chip unit from being sold to a third party but the issue was resolved with Bain Capital and SK Hynix agreeing to cover compensation expenses.

Concerns over anti-trust issues involving SK Hynix that also makes flash memory and its equity ownership have also been eased with the Korean company agreeing to limit control in the future. Sankei Shimbun reported that SK Hynix has agreed to limit future equity to below 15 percent.

Due to frequent reversals in the deal, SK Hynix did not issue a statement and declined to comment until final deal.

Shares of SK Hynix ended Wednesday 1.9 percent up at 80,700 won ($71.54).

By Kim Dong-eun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]