Japan's Fujitsu to Sell Controlling Stake in Chip-Packaging Unit
By Ronnie Harui
Fujitsu has agreed to sell a controlling stake in its semiconductor-packaging unit to a consortium of investors who plan to take the business private in a roughly $4.7 billion deal.
Under the agreement, the Japanese electronics company will sell Shinko Electric Industries to a special-purpose company owned by a consortium led by JIC Capital, a wholly-owned subsidiary of government-backed Japan Investment Corp.
Fujitsu plans to transfer its 50.03% stake in Shinko Electric to JICC-04, a special-purpose vehicle owned by the consortium, for 285.1 billion yen ($1.96 billion), it said late Tuesday.
The move is aimed at speeding up Fujitsu's efforts to transform its portfolio, the company said, adding that it would use the cash from the deal to invest in areas of growth.
The consortium, which also comprises Dai Nippon Printing and Mitsui Chemicals, ultimately aims to take Shinko Electric private, JIC and JIC Capital said in a joint statement. It intends to launch a tender offer for the Shinko shares not held by Fujitsu, offering Y5,920 for each--a 13% premium to Tuesday's closing price--amounting to Y399.8 billion.
Shinko shares were last flat at Y5,527, while Fujitsu shares were 2.9% lower at Y21,605.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
December 12, 2023 22:58 ET (03:58 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
4 Utility Stocks to Play the AI Data Center Boom
-
Albemarle Earnings: We Expect Improved Results In the Rest of Year Following Cyclically Low Profits
-
Novo Nordisk Earnings: Raised Fair Value Estimate Still a Contrast to Market Overenthusiasm
-
After Earnings, Is Verizon Stock a Buy, a Sell, or Fairly Valued?
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
How to Invest Like Warren Buffett
-
Cognizant Earnings: Improved Profitability Buttresses Results as Customer Spending Remains Muted
-
10 Top-Performing Dividend Stocks of the Month