Toshiba rises on reports Hon Hai offers more than $18bn for chip unit

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Shares in Toshiba have jumped in morning trade following renewed reports Taiwan’s Hon Hai Precision Industry is offering more than ¥‎2tn ($18bn) for the conglomerate’s prized memory chip business.

Toshiba was up 2.8 per cent in morning trade in Tokyo, and had been up by as much as 4.5 per cent.

Bidders such as Hon Hai – also known as Foxconn – as well as South Korea’s SK Hynix, private equity fund Silver Lake and at least three other groups are thought to have made bids for a minority stake in Toshiba’s Nand flash memory unit chip business.

TV Asahi reported this morning that Hon Hai, a key supplier to Apple, was offering more than ¥‎2tn for the chip unit.

Toshiba may be forced to sell the division in an effort to shore up its finances, which have been damaged by an accounting scandal as well as a $6.3bn writedown on its US nuclear business.

Shares had fallen about 15 per in the previous two sessions on media reports the company may require further financial aid and would miss another deadline for its quarterly earnings in the wake of its Westinghouse nuclear division filing for bankruptcy protection in the US.

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