Fix Your Memory Module
 
Home
News
Products
Shop
Memory
Corporate
Contact
 

News
Industry News
Publications
CST News
Help/Support
Member Area
Tester Brochure
Demo Library
Software
Tester FAQs

biology medicine news product technology definition

Friday, August 17, 2018
Memory Industry News
Email ArticlePrinter Format PreviousNext

Bain put partnership restrictions on Seagate and SK Hynix


Friday, October 27, 2017

Seagate Technology PLC (STX.O), a member of the group taking over Toshiba Corp’s (6502.T) chip unit, pledged not to buy any stake in the unit for 10 years as part of the $18 billion deal, showed a document from group leader Bain Capital LP reviewed by Reuters.

The pledge was made as Toshiba’s chip joint venture partner Western Digital Corp (WDC.O) objected to the unit’s sale to rivals. Seagate directly competes with Western Digital in hard disk drives.

Western Digital still opposes any deal without its consent and has sought an injunction at the International Court of Arbitration.

Seagate has “signed to a 10-year stand-still agreement barring them from purchasing any voting equity interest” in the unit “or having any governance rights,” showed the document Bain prepared for analysts.

Bain confirmed the contents of the document to Reuters.

Toshiba did not provide immediate comment. Reuters could not reach Seagate for comment.

Western Digital has also protested against the participation of another competitor, South Korean chipmaker SK Hynix Inc (000660.KS), the world’s fifth-biggest NAND memory chip maker.

Toshiba has said SK Hynix will for 10 years be prevented from accessing proprietary information belonging to the chip unit and owning more than 15 percent of voting rights.

Bain, in its document, said the U.S. private equity firm “will control the board and governance of the company.”

Seagate has committed up to $1.25 billion to finance the purchase of the chip unit - the world’s second-biggest producer of NAND flash memory semiconductors - and expects to enter into a long-term supply agreement.

“This agreement has the opportunity to increase the potential for meaningful future revenue growth from Seagate’s NAND storage portfolio,” Seagate Chief Executive Officer Dave Mosley said in an earnings call this week.

By: DocMemory
Copyright © 2017 CST, Inc. All Rights Reserved

Email ArticlePrinter Format PreviousNext
Latest Industry News
Purdue scientists combines transistor and laser on new FET8/17/2018
EDA giant Cadence Design to expand into Nanjing, China8/17/2018
Infineon to post and sell its IoT chips on Chinese e-commerce site8/17/2018
Nvidia demonstrates ray tracing speed graphics card with GDDR68/17/2018
Job posting implies Apple looking at a health processor8/16/2018
3 more flaws found on Intel Xeon processor8/16/2018
Turkey increased tariffs on certain U.S. products in retaliations8/16/2018
U.S. productivity growth at 2.9 percent8/16/2018
5G roll out in India to detlay8/15/2018
DRAM industry increased its second quarter output to $25.69 billion8/15/2018

CST Inc. Memory Tester DDR Tester
Copyright © 1994 - 2018 CST, Inc. All Rights Reserved