Dechert Advises SK hynix Inc. in US$18 Billion Acquisition of Toshiba's Memory-Chip Unit

Dechert LLP served as legal advisor to long-time client SK hynix Inc., a Korean memory chip maker, on its role in the acquisition of Japan-based Toshiba Corporation’s  NAND flash memory and solid-state drive business, now known as Toshiba Memory Corp. SK hynix was part of the purchasing consortium led by US private equity firm Bain Capital that also included Apple Inc. and Dell Technologies. Valued at US$18 billion, this transaction closed on June 1, 2018. According to Thomson Reuters, it’s the fourth largest private equity-backed M&A deal since the financial crisis of 2008. 

SK hynix provided financing via an innovative convertible-bond instrument and a fund investment structure. The purchasing consortium had to navigate through aggressive challenges (including in the courts) from rival bidders; it had to navigate complex, pan-Asian, geo-political minefields; and it obtained critical regulatory approvals, including anti-trust approvals from numerous regulatory authorities. 

The team working on behalf of SK hynix was led by Hong-Kong based corporate partner David Cho ‎and the cross-border team included London-based partners John Markland (Finance) and Giles Belsey (Corporate); Singapore-based partner Dean Collins (Financial Services); Brussels-based partner Alec Burnside, New York-based partner Michael Weiner and counsel Jill Ross (Antitrust/Competition); Los Angeles-based partner Andrew Wong (Litigation); New York-based partners Joshua Rawson and Violetta Kokolus (Intellectual Property); with additional support from associates Iris Park (Corporate); Marjolein De Backer (Antitrust/Competition); and Chelsea Fish, Nathan McClellan, Brian Raphael, and Lily North (Litigation).

This transaction won "M&A Deal of the Year for North Asia" at The Asian Lawyer's Asia Legal Awards 2018. It was also named "Japan Deal of the Year," "M&A Deal of the Year (Premium)," and "Technology, Media and Telecommunications Deal of the Year" at Asian Legal Business's ALB Japan Law Awards 2018. 

About Dechert

Dechert is a leading global law firm with 27 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.