21.06.201702:56:00UTC+00Toshiba Names State-Led Group as Preferred Buyer for Chip Business

Toshiba Corp. said it has chosen a consortium led by the Japanese government as the favored for its computer chip business. However, the company said it was not sure if the deal could be closed in time to prevent the company from collapsing.

The bidding group, led by Bain Capital and SK Hynix Inc. includes a state-backed fund, the Innovation Network Corp. of Japan, the Development Bank of Japan. The support for the bid by the Japan government-supported companies are perceived to be important for winning approval by the government for an acquisition. Toshiba hopes a deal will be brokered with the group by June 28 and end the transaction by March.

The group has said it is willing to pay 2.1 trillion yen for the semiconductor business, according to sources.

The sale of its prized business is seen to raise around $18 billion, and Toshiba, who is struggling with heavy writedowns related to its U.S. nuclear business Westinghouse Electric Co., needs the cash as soon as possible.

Toshiba shares slid 1.3 percent. The Japanese conglomerate's stock is up around 15 percent so far this year.