Toshiba plans management buyout in wafer unit

Toshiba Ceramics Co., the silicon wafer unit of Toshiba Corp., plans to conduct a management buyout in conjunction with a pair of private equity firms, according to a Reuters report.

The report, which cites two unnamed financial sources, said Toshiba plans to sell its 40.4 per cent stake in the unit, with private equity firms of the Carlyle Group and Unison Capital helping to fund the buyout.

According to the Reuters report, Carlyle and Unison will set up a special-purpose company to buy all Toshiba Ceramics shares through a tender offer. Toshiba said through a statement that it plans to sell its stake in the unit, the report said.

Buyout of Toshiba Ceramics by private equity would fall in line with a recent trend that has seen more private equity funding shaking up the semiconductor industry. Philips Semiconductors' chip unit, now NXP Semiconductors and Freescale Semiconductor Inc. have both been purchased by private equity consortiums in recent weeks. Several other firms, including Cypress Semiconductor Inc., have reportedly been the target of private equity in recent weeks.

- Dylan McGrath
EE Times