Toshiba Can't Sell Memory Unit??

Western Digital has put out a statement saying that Toshiba cannot complete the sale of its memory division to a Bain-led consortium without its consent.

‘Toshiba ignores that the arbitration seeks to prohibit the transfer of any JV interests without SanDisk’s consent. Because Toshiba transferred other JV interests, such as its managerial and control rights in the JVs, Toshiba cannot close its transaction if SanDisk prevails.’

WD claims that it has contractual consent rights to the sale and notes that Bain hasn’t reached out to Western Digital as Bain had claimed.

Western Digital reiterates that Toshiba doesn’t have the right to complete the Fab 6 NAND manufacturing without Western Digital’s participation.

The company also shoots down Toshiba’s contingency plan to set aside the JV interests and sell the rest of its memory unit with a lowered price.

WD says that Toshiba thinks it can close the sale even if Toshiba loses the arbitration.

‘Toshiba implies that our they still intend to close even if Toshiba loses,’ says the WD document.