KKP will provide 50 billion yen for Renesas

Published:2012/6/26 1:48:00 Author:Ecco From:SeekIC

There is a Nikkei report indicating that struggling Japanese chip company Renesas Electronics Corp. is to seek a 50 billion yen (about $620 million) investment from private equity firm Kohlberg Kravis Roberts & Co. (KKR).

The earlier report from Reuters says that Renesas' two parent companies – Hitachi and Mitsubishi – have agreed in principle to provide a support package worth 50 billion yen. NEC is the third and largest shareholder in Renesas, which is unable to contribute with loans as it is struggling with the implementation of its own turn-around plan.

The 50 billion yen shows that Renesas needs for a $1.3 billion cash injection for a plan to cut off about one-third its work force and to close more than half its domestic manufacturing sites. The 50 billion yen also can help to increase Renesas outstanding share count by nearly 40 percent, giving KKR a stake of just over 26 percent. It would also make KKR be the largest shareholder in Renesas, ahead of NEC, Hitachi and Mitsubishi, whose shareholdings of about 35, 31 and 25 percent, respectively would be diluted to about 25, 22 and 18 percent.

Reprinted Url Of This Article: http://www.seekic.com/blog/IndustryNews/2012/06/26/KKP_will_provide_50_billion_yen_for_Renesas.html

Print this Page | Comments | Reading(656)