Japan’s state-backed fund INCJ, others to trim stake worth $3b in Renesas

Photo: Reuters

Renesas Electronics Corp said on Tuesday a state-backed fund and other shareholders would reduce their stakes in the Japanese chip maker, in a sale worth up to 295 billion yen ($2.8 billion) based on the prior day’s closing price.

The fund, Innovation Network Corp of Japan (INCJ), will reduce its stake to 33.4 percent from 45.6 percent, a Renesas spokeswoman said. Hitachi Ltd will cut its stake to 3.7 percent from 5.6 percent and NEC Corp will lower its holding to 4.3 percent from 6.4 percent, she said.

The price of the shares, which will be sold through the market, will be determined later this month.

Renesas shares were down 10 percent after the announcement, their lowest since July last year.

Public broadcaster NHK, which first reported the news, said the sale by INCJ was aimed at giving the chipmaker management greater freedom to make acquisitions as it seeks to bolster its global competitiveness.

INCJ rescued cash-strapped Renesas in 2013 with an investment of 150 billion yen ($1.4 billion), and received 69 percent of the chipmaker, but has whittled down its stake as the company regained its footing.

Last month, INCJ agreed to sell a 4.5 percent stake in Renesas to auto parts supplier Denso Corp.

Renesas last year bought U.S. chipmaker Intersil Corp for $3.2 billion and its chief executive said it was constantly reviewing its list of potential acquisition targets.

Renesas was created in 2010 from a merger of NEC’s chip division and Renesas Technology, which itself was established through a merger of the chip units of Hitachi and Mitsubishi Electric Corp.

Also Read:

Japan urges firms not to rely too much on banks for M&As

Japan to extend life of state-backed innovation fund INCJ

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.