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Toshiba does not have the right to unilaterally sell

On the evening of June 22, Beijing time, Western Digital said in a statement today that Toshiba unilaterally selected the preferred bidders of the chip joint venture factory without the consent of the subsidiary SANDISK, which violated the contract between the two parties.
It is understood that Toshiba announced on the 21st that it has selected a consortium led by the Japan Industrial Innovation Agency (INCJ) as the preferred bidder for its chip business. The consortium also includes Japan Development Bank (DBJ), SK Hynix and US private equity firm Bain Capital.
In response, Western Digital said in a statement today that Toshiba is still ignoring the existence of SanDisk and ignoring current legal procedures. The contract between the parties has clearly stated that Toshiba has no right to transfer the chip joint venture factory to a third party without SanDisk’s consent. Currently, SanDisk does not agree to any transaction and will continue to protect its interests in the joint venture factory in the future, and reserves the right to resolve the dispute through court injunctions and arbitration.
The industry believes that the Western Digital’s “poor pursuit” for Toshiba is mainly because the current Western data is at a disadvantage in the acquisition of Toshiba chips. If the negotiation time can be lengthened in this way, it will not only benefit the western data, but also benefit other competitors such as Foxconn who are also in a disadvantaged position.
It is reported that on June 15, Western Digital filed a lawsuit in the California court to prohibit Toshiba from selling semiconductor business before the outcome of the arbitration court. Prior to this, Western Digital had initiated an arbitration procedure through the International Chamber of Commerce Arbitration, requesting Toshiba to stop selling the chip business.
Western Digital finally stated that it has full confidence in SanDisk’s “right to consent” and legal basis and is confident in the outcome of the arbitration. The Arbitration Commission will make a ruling on July 14.
It is worth mentioning that Hon Hai Precision held a general meeting of shareholders today. Hon Hai Chairman Guo Taiming said that the negotiations have not ended. The possibility still exists. Hon Hai has not given up the acquisition of Toshiba Semiconductor business. He said: “That is not a nail-biting deal. I believe Foxconn has a chance.”

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