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April 10, 2017, 10:49 a.m. EDT

Foxconn could bid up to $27 billion for Toshiba’s chip business

Next highest bidder said to be about $18 billion

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By Takashi Mochizuki


Bloomberg News
Foxconn employees peek out from the back of a company sign at the Foxconn factory in Longhua, Shenzhen, China.

Foxconn Technology Group /zigman2/quotes/204111604/delayed TW:2354 -0.36%   of Taiwan has told Toshiba Corp. /zigman2/quotes/205628942/delayed JP:6502 0.00%   that it is ready to pay as much as 3 trillion yen ($27 billion) for Toshiba’s computer-chip business, people familiar with the matter said, another bold bid for a pillar of Japan’s high-tech industry.

The Taiwanese company, the world’s largest electronics contract manufacturer and an assembler of Apple Inc. /zigman2/quotes/202934861/composite AAPL +0.55%   products, used a similar strategy last year to win control of Sharp /zigman2/quotes/203224600/delayed JP:6753 +0.83%   It put forth a bid price well beyond what others were offering and ultimately beat out a Japanese government-backed investment fund.

The latest bid by Foxconn, formally known as Hon Hai Precision Industry Co. , could put the government of Japanese Prime Minister Shinzo Abe in a tough spot. Some in the government are hoping to see a Japanese company or a joint U.S.-Japan team take the prized Toshiba asset because they see the chip business as strategic, say people familiar with the matter. But it would be hard for financially strapped Toshiba to turn down extra cash if Foxconn has the highest bid.

Analysts have estimated the business’s fair value at between ¥1.5 trillion and ¥2 trillion. One person familiar with the matter said the next-highest bidder after Foxconn offered about ¥2 trillion when initial bids for the business were accepted in late March.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/204111604/delayed
TW : Taiwan
NT$ 55.00
-0.20 -0.36%
Volume: 3.04M
June 4, 2020 1:21p
P/E Ratio
11.42
Dividend Yield
4.55%
Market Cap
NT$78.08 billion
Rev. per Employee
NT$888.52M
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/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 3,100.00
0.00 0.00%
Volume: 811,500
June 4, 2020 2:21p
P/E Ratio
N/A
Dividend Yield
0.65%
Market Cap
¥1397.03 billion
Rev. per Employee
¥26.86M
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 325.12
+1.78 +0.55%
Volume: 26.12M
June 3, 2020 4:00p
P/E Ratio
25.49
Dividend Yield
1.01%
Market Cap
$1409.18 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/203224600/delayed
JP : Japan: Tokyo
¥ 1,212.00
+10.00 +0.83%
Volume: 1.70M
June 4, 2020 2:21p
P/E Ratio
39.05
Dividend Yield
1.49%
Market Cap
¥726.30 billion
Rev. per Employee
¥50.23M
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