The $18 billion agreement with the Bain group is, however, still unsigned, with Toshiba telling its main banks this week that Apple Inc, a member of the consortium and an important client, had yet to agree to key terms. Toshiba memory by the Korea-US-Japan Consortium which includes SK Hynix will pay 2 trillion yen (US$17.7 billion) for the acquisition of the Toshiba Memory and SK Hynix will fork over 395 billion yen (US$3.5 billion).
SK hynix said it is investing 1.3 trillion won of the total funding as convertible bonds that can be used for it to acquire up to 15 percent stake in the Toshiba unit.
SK Hynix will be joined by Apple after talks over the future supply of NAND flash memory chips were settled. SK Hynix is the world's second-largest DRAM maker, but has yet to stand out in NAND flashes and system semiconductors.
SK Hynix is part of a group led by Bain Capital Private Equity that includes several Japanese and US companies such as Apple, Dell, Kingston Technology and Seagate Technology. The inclusion of SK Hynix and Seagate, both competitors to WDC, are obviously displeasing to the company.
The Bloomberg article said: "If KKR is able to persuade Apple to switch sides at the last minute, it could upset a deal that had looked like it would end months of twists and turns in finding a buyer for Toshiba's prized asset".
Western Digital filed a request for arbitration in May with the International Chamber of Commerce's International Court of Arbitration in an effort to block the sale of Toshiba Memory.
But as the legal process is likely to take more than two years, Western Digital has chose to seek an interim injunction that would temporarily halt the sale until a court decision is made. That arbitration request also seeks a ruling preventing Toshiba from transferring assets of the joint venture between the two companies without Western Digital's consent and interim injunctive relief presumably in the form of preventing sale of Toshiba Memory until the matter is resolved. Reuters says Apple has not yet agreed to fund a preferred shares participation deal with the Bain group.