Photo/IllutrationThe Toshiba Corp. logo atop a Tokyo building (Asahi Shimbun file photo)

Struggling Toshiba Corp. spun off its highly lucrative semiconductor business to U.S.-led consortium Bain Capital under a 2-trillion-yen ($18.3 billion) deal that allows it to remain a Japanese entity, although barely.

Bain Capital will hold 49.9 percent of the voting rights in Toshiba Memory, giving the Japanese side a 0.2-percent edge.

The complex nature of the sale of the Toshiba subsidiary may yet prove to be a hindrance when quick investment decisions have to be made in an industrial sector where change is rapid.

After months of negotiations and disputes among former partners, Toshiba finally announced June 1 that it had wrapped up the sale of Toshiba Memory.

Toshiba sold all of its shares to a multinational consortium made up of more than 10 entities from the United States, Japan and South Korea.

While Toshiba Memory will become an independent concern with about the eighth largest global share in the semiconductor industry, the company is expected to jettison the Toshiba part of its name a year from now. The company's other goal is to regain listing on a stock exchange three years hence.

Although Toshiba is reinvesting about 350 billion yen in Toshiba Memory, it will not have complete control over the voting rights it retains. Two Japanese government-backed funds, Innovation Network Corp. of Japan (INCJ) and Development Bank of Japan Inc. (DBJ), will have the right to state their case for a total of 33.4 percent worth of the voting rights held by Toshiba.

Toshiba was forced to sell its profitable semiconductor unit to cover huge losses stemming from its nuclear power plant operations in the United States.

While the approximately 970 billion yen in gains from the sales will strengthen Toshiba's financial base, the company now faces the difficult task of fostering a new revenue source after letting go of the unit that generated about 90 percent of its operating profits.