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A government-backed turnaround fund and a group of Japanese companies will officially propose an acquisition plan for struggling chip-maker Renesas Electronics Corp. that would involve the purchase of ¥200 billion of news shares, sources said Tuesday.

Renesas is expected to accept the acquisition offer by the alliance led by the Innovation Network Corp. of Japan, which is willing to invest a greater amount in Renesas than Kohlberg Kravis Roberts & Co., a U.S. investment fund that is considering investing around ¥100 billion in the company.

Renesas plans to make a final decision around mid-November, the sources said.

The 10 or so companies involved in the acquisition plan include Toyota Motor Corp. and Nissan Motor Co. as well as electronics and precision machinery makers such as Panasonic Corp., Canon Inc. and Nikon Corp., they said.

The companies want to ensure stable supplies of semiconductor devices essential for cars and home electronics by investing in Renesas, the world’s leading producer of such microcontrollers.

Under their plan, the government-backed fund plans to acquire ¥150 billion of new Renesas shares worth ¥200 billion and gain control of around two-thirds of the total shares, with the companies taking up the remaining ¥50 billion of the new share issue, they said.

Renesas’ market capitalization stood at ¥119.71 billion as of Tuesday.

In an effort to turn its deteriorating business around, Renesas is implementing a series of restructuring measures by receiving a total of ¥97 billion in financial aid from its main creditor banks and three shareholders — NEC Corp., Hitachi Ltd. and Mitsubishi Electric Corp.

The company is also considering integrating its money-losing system chip operations with those of Panasonic and Fujitsu Ltd.

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