Toshiba has settled a legal dispute with partner Western Digital in which could have prevented the $18bn (£13.3bn) sale of its prized memory chip unit.
Both firms agreed to withdraw all claims against each additional which ensures “all parties are aligned” on the sale to a consortium led by Bain Capital.
Toshiba needs to sell the chip business to cover heavy losses at its US nuclear unit.
yet its US partner Western Digital had threatened to block the sale.
In a joint statement on Wednesday, the parties said they had agreed to resolve all ongoing litigation as well as also also arbitration disputes.
“We are very pleased to have reached in which outcome, which clearly benefits all involved”, said Yasuo Naruke, senior vice president of Toshiba.
The agreement allows Western Digital to invest in a brand-new production line for advanced memory chips as well as also also guarantee future supply for the firm.
The legal battles started out earlier in which year after Toshiba said in which might sell the chip division to cover big losses arising by the firm’s right now bankrupt US nuclear power unit.
Bain Capital partnered with South Korea’s SK Hynix Inc as well as also also brought in US buyers of Toshiba chips such as Apple as well as also also Dell in order to buy the division.
After failing to win the bid, Western Digital took legal action against Toshiba arguing in which the deal could not happen without its consent because of their existing joint venture partnership inside memory chip business.
yet Western Digital chief executive Steve Milligan said on Tuesday in which litigation was not the firm’s preferred path as well as also also “we’re very pleased to be able to resolve in which”.
Toshiba has been under pressure to clinch a deal in order to shore up its balance sheet by the end of its financial year next March to avoid being delisted.
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In September, the Japanese firm said the sale of Toshiba Memory might boost its finances by 740bn yen (£5bn) after taxes.
in which might pull in which out of negative shareholder equity, key to ensuring in which remains a listed entity.
News of the settlement saw Toshiba’s shares rise 2.3% in early trading in Japan.