Toshiba's shares are finally making gains as its chip business reels in suitors

 
Courtney Goldsmith
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Toshiba's share are finally up (Source: Getty)

Toshiba's shares closed more than 22 per cent higher after Japanese trading today on news rivals are interested in its chip business.

A Nikkei Business Daily report suggested the troubled Japanese conglomerate has asked potential bidders to value its prized memory chip business at 2 trillion yen (£14.1bn) in a bid to maximise income from the sale.

The firm is working to fill a multi-billion pound hole in its US nuclear business by selling a majority stake or even all of its memory chip unit, which is its most valuable business. Previously it planned to sell 19.9 per cent.

At the time, more than 10 companies and investment funds expressed interest, including rivals SK Hynix Inc and Micron Technology, data storage firm Western Digital and financial investors such as Bain Capital. Their offers are thought to have placed the unit's total value at between 1.5 trillion yen and 2 trillion yen.

Read more: Toshiba shares are plunging to fresh lows today

A source told Reuters the sale is "the best and the only way Toshiba can raise a large amount of funds and wipe out concerns about its credit risk".

The firm, which has fingers in pies from TVs to nuclear, told interested companies about the new bid conditions yesterday - the 2 trillion yen valuation and the minimum 50 per cent investment - according to the Nikkei.

Read more: Toshiba shares plummet in reaction to nuclear delay

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