SK Hynix has thrown its hat in the ring to bid for a stake in flash memory maker Toshiba.
In a regulatory filing, SK Hynix stated that it has presented a non-binding proposal to Toshiba though it has not yet finalized its offer, the the Korea Times is reporting. The bid of KRW3 trillion (US$2.6 billion) is for a 20% stake in Toshiba's flash memory business.
On January 27, Toshiba announced that it spinning off its memory business, including its SSD business and is willing to consider a third party cash injection as a financial measure. The Asian Nikkei Review is reporting that offers have been made by five companies including Micron Technology, Western Digital, and Bain Capital.
Reuters is reporting that Toshiba prefers an investment firm rather than a memory maker to provide the investment, as it would avoid regulatory scrutiny and speed up the sale. Toshiba is looking for the cash injection due to massive losses at its US nuclear power business.
SK Hynix had consolidated sales for fiscal year 2016 of KRW17.2 trillion while operating profit amounted to KRW3.28 trillion and net income was KRW2.96 trillion. Operating margin for the year was 19% and net margin was 17%.