Taiwan-based Foxconn Technology Group reportedly informed Toshiba Corp. that it is ready to offer as much as 3 trillion yen or $27 billion for Toshiba’s computer-chip business marking another bold bid for a Japanese giant .
Foxconn Technology Co Ltd (TPE) without any doubt is the world’s largest electronics contract manufacturer and an assembler of Apple Inc. merchandise, used a similar approach last year to win control of Sharp, It offered a bid price well ahead of what others were offering and ultimately beat out a Japanese government-backed investment fund.
In the meantime, this bid by Foxconn Technology Co Ltd (TPE) officially known as Hon Hai Precision Industry Co. , could put the government of Japanese Prime Minister Shinzo Abe in a tough spot.
According to reports, some of the government stakeholders are hoping to see a Japanese company or a joint U.S.-Japan team take the valued Toshiba asset because they consider the chip business as strategic, although it would be difficult for economically strapped Toshiba to reject extra cash if Foxconn has the best bid.
Furthermore Analysts have predicted the business’s fair-value at between ¥1.5 trillion and ¥2 trillion. Report said that the next-highest bidder after Foxconn put on the table about ¥2 trillion when initial bids for the business were accepted in late March.
Both Toshiba and Japanese officials are set to look for offers led by Japanese buyers, though no bids have emerged up till now, the report said.
Moreover Terry Gou, founder of Foxconn, said in March the company was “definitely bidding” for Toshiba’s chip business. Toshiba, was not right away available for comment.