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Seagate to give $1.25 billion of $18 billion deal to buy Toshiba chip unit

A Seagate Tech external computer hard drive is shown in this photo illustration in Encinitas, California, U.S., January 23, 2017. REUTERS/Mike Blake

(Reuters) - Seagate Technology PLC said on Thursday it would contribute up to $1.25 billion toward the purchase of Toshiba Corp’s chip unit by a consortium led by Bain Capital LP.

Toshiba said earlier in the day it had signed an $18 billion deal to sell the unit to the group, overcoming a key - albeit not its last - hurdle as it scrambles for funds to stave off a potential delisting.

Seagate also said it expects to enter into a long-term supply agreement with the unit, Toshiba Memory Corp.

Besides Seagate, Bain’s consortium includes Apple Inc, South Korean chipmaker SK Hynix, Dell Inc [DI.UL] and Kingston Technology.

Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza

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