TOKYO (Reuters) -State-backed Japan Investment Corp (JIC) on Wednesday said it would join Dai Nippon Printing and Mitsui Chemicals to buy out Shinko Electric Industries for 684.9 billion yen ($4.71 billion).
The consortium to acquire the chip-packaging unit of Fujitsu plans to launch a tender offer in August of next year after receiving necessary regulatory approvals in Japan and overseas, JIC said.
The JIC-led group will offer to pay 5,920 yen per Shinko Electric share for a total of 399.8 billion yen ($2.75 billion)to buy the 50% stake not owned by Fujitsu.
The group will then provide funds to Shinko Electric to buy back the remaining 50% from Fujitsu for 285.1 billion yen in the two-tier buyout.
Shares of Shinko Electric closed up 5.5% at 5,528 yen on Tuesday after the Tokyo Stock Exchange suspended trading in them following a Bloomberg report on the buyout.
Fujitsu’s offer to sell Shinko Electric had drawn interest from global buyout firms Bain Capital, KKR and Apollo Global Management, sources had told Reuters earlier.
Trading firm Mitsubishi Corp was also considering a bid, separate sources had said.
Semiconductor packaging remains an area of strength for Japan, with Shinko, Ibiden and Toppan Holdings 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.
($1 = 145.4900 yen)
(Reporting by Mariko Katsumura, Chang-Ran Kim and Makiko Yamazaki; Editing by Shri Navaratnam, Tom Hogue and Mark Porter)
