In a situation where Toshiba is delaying the announcement of a prime negotiator which was expected to be made by early this week at the latest, Toshiba abruptly announced intention to sell even the management control of its semiconductor business.
If SK Hynix succeeds in acquiring the management control of the chip business from Toshiba which now ranks No. 2 in the global NAND flash market, it would greatly contribute to enhancing the competitiveness of SK Hynix in the area.
With this in mind, SK Hynix instantly launched the feasibility review of acquiring the stake. According to Japanese media, Toshiba delayed the disclosure of its financial statements and failed to meet the deadline set for the listed companies in Japan.
Instead, Toshiba released preliminary results only. The loss from its nuclear power plant business in the United States alone amounted to 712.5 billion yen (US$6.27 billion). Accordingly, Toshiba fell into the state of capital impairment as of the end of 2016 when its debts are 191.2 billion yen ($1.68 billion) higher than assets.