Hong Kong One-Dimensional Investment Fund Says Toshiba's chip division should be worth more than $30 billion

Reuters, Tokyo, April 6 - Hong Kong’s rights investment fund, Argyle Street Management Ltd, opposes Toshiba’s sale of its chip unit to a consortium led by Bain Capital, saying the deal should be between 3.3 trillion and 4.4 The valuation of trillion yen (30 billion -41 billion U.S. dollars) was renegotiated based on the valuation.

Argyle Street Management stated on Friday that the current transaction was reached when Toshiba urgently needed cash. At that time, its chip division was valued at 2 trillion yen. The investment fund stated that Toshiba is no longer insolvent. The right to terminate the sale of the chip business without incurring any penalty because the transaction was not completed before the March 31 deadline.

Argyle Street Management added that if Bain’s consortium does not agree to a higher price, Toshiba should consider listing the chip division.