Toshiba Corporation (TSE:6502) has started the process to sell a minority stake in its profitable flash memory chip business, expecting to fetch several billion dollars as it faces a bigger-than-expected write-down for its U.S. nuclear business, Kyodo News reported. Permira Advisers Ltd. and Bain Capital Private Equity, LP are interested in the bid for what is expected to be the sale of 20%-30% of the memory chip business, which Toshiba is expected to split off, Kyodo said, citing sources. Japan's big banks and the Development Bank of Japan are considering buying into a potential spinoff of Toshiba's (TOSYY) chip operations.

Potential investors include, Sumitomo Mitsui Financial Group, Inc. (TSE:8316) and the Blue Partners Fund, which teams with DBJ and Mizuho Financial Group, Inc. (TSE:8411). KKR & Co. L.P. (NYSE:KKR) is among four U.S. and U.K. firms that have signed nondisclosure agreements and are preparing bids to acquire a stake in Toshiba's memory chip operations should the Japanese electronics giant spin off the business, according to a report in Nikkei Asian Review.

Silver Lake is targeting the assets, the report pointed out.