Japan state-backed JIC consortium to buy out Shinko Electric for more than $5.5 bln -Bloomberg News


Adds details, background

TOKYO, Dec 12 (Reuters) - State-backed Japan Investment Corp will join hands with Dai Nippon Printing 7912.T and Mitsui Chemicals 4183.T to buy out Shinko Electric Industries 6967.T for more than 800 billion yen ($5.5 billion), Bloomberg News reported on Tuesday.

The consortium, which is set to gain preferred bidder status to acquire the chip packaging unit of Fujitsu 6702.T, will announce its tender offer bid as soon as this week, the report said.

The Tokyo Stock Exchange suspended trading in shares of Shinko Electric after the report. Its shares closed up 5.5% at 5,528 yen on Tuesday.

A JIC spokesperson declined to comment on individual cases.

Fujitsu's offer to sell its 50% stake in Shinko Electric had drawn interest from global buyout firms Bain Capital, KKR KKR.N and Apollo Global Management, sources had told Reuters earlier. Trading firm Mitsubishi Corp 8058.T was also considering a bid, separate sources had said.

Semiconductor packaging remains an area of strength for Japan, with Shinko, Ibiden 4062.T and Toppan Holdings 7911.T all major players in the global chip supply chain.

Japan has designated chips as "specified critical materials", spending billions of dollars as subsidies to boost its ability to produce advanced chips and to maintain its edge as a maker of materials and manufacturing tools.

(Reporting by Mariko Katsumura and Chang-Ran Kim; Editing by Shri Navaratnam and Tom Hogue)

((ran.kim@thomsonreuters.com; +81-3-4520-1228;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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