HALISTER: Broadcom Prepares 4t Yen for Toshiba Chip Bid, Nikkan Kogyo Says

Broadcom Prepares 4t Yen for Toshiba Chip Bid, Nikkan Kogyo Says

(Bloomberg) -- Broadcom preparing >4t yen in funds for acquisition of Toshiba’s semiconductor business and subsequent investments, Nikkan Kogyo reports, citing unidentified people.
  • Broadcom offered ~2t yen in acquisition; could increase to ~3t yen
    • Secured ~1.5t yen credit lines from financial institutions
  • Preparing funds for 400b yen/year in capex, citing unidentified person
    • Funds including from Silver Lake Partners worth several hundreds of billions of yen for post-acquisition investments
  • Broadcom sees focused investments in Toshiba’s Yokkaichi plant in Japan’s Mie prefecture as a key to winning against competitors including Samsung
  • INCJ to submit joint bid with other U.S., Japan entities including KKR and DBJ; Apple appears to be interested in joining the bid, Nikkan Kogyo cites unidentified industry official
  • Western Digital considering proposal by Toshiba on taking a minority stake in Toshiba’s chip business
Original story (Japanese language): https://goo.gl/retQG4

Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
AVGO US (Broadcom Ltd)
6502 JP (Toshiba Corp)
AAPL US (Apple Inc)
INCJZ JP (Innovation Network Corp of Japan)
KKR US (KKR & Co LP)

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