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JohnM555
Is not that a bit cheap? 66% of the company for 2.4 bil USD? That would total ...
Renesas shareholders reportedly set to approve bailout deal
Dylan McGrath
11/26/2012 2:42 PM EST
SAN FRANCISCO—Renesas Electronics Corp.'s major shareholders are close to approving a deal to sell two-thirds of the company to a government-backed entity for $2.4 billion in bailout funds, according to a report by the Reuters news service.
According to the Reuters report, which cited unnamed sources familiar with the negotiations, shares of Renesas traded up 17 percent on the news that the rescue package was being finalized.
According to the Reuters report, Innovation Network Corp. of Japan (INCJ), a Japanese government investment fund, will spend about ($2.2 billion) to take a two-thirds stake in Renesas. The price is an increase from the 150 billion yen INCJ was reportedly offering for two thirds of Renesas last month.
As part of the deal, eight Japanese firms, including Renesas customers such as Toyota Motor Corp. and Nissan Motor Co. Ltd. will provide another 20 billion yen combined, according to the report, which cited Japanese publications Nikkei and the Daily Yomiuri.
Reuters, again citing anonymous sources, reported that shareholder approval of the deal has been delayed by several weeks and is now expected to be announced early next month.
Related stories:
According to the Reuters report, which cited unnamed sources familiar with the negotiations, shares of Renesas traded up 17 percent on the news that the rescue package was being finalized.
According to the Reuters report, Innovation Network Corp. of Japan (INCJ), a Japanese government investment fund, will spend about ($2.2 billion) to take a two-thirds stake in Renesas. The price is an increase from the 150 billion yen INCJ was reportedly offering for two thirds of Renesas last month.
As part of the deal, eight Japanese firms, including Renesas customers such as Toyota Motor Corp. and Nissan Motor Co. Ltd. will provide another 20 billion yen combined, according to the report, which cited Japanese publications Nikkei and the Daily Yomiuri.
Reuters, again citing anonymous sources, reported that shareholder approval of the deal has been delayed by several weeks and is now expected to be announced early next month.
Related stories:
- Yoshida in Japan: Can Wii U save Renesas?
- Yoshida in Japan: Imagination reimagined in Asia
- Japanese CE giants losing credibility war
- Micron's Elpida buy approved by Tokyo court
- Sharp, dulled by losses, running out of options
- Renesas bets future on 'smart society'
- Japan set to rescue Renesas
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JohnM555
11/28/2012 6:35 AM EST
Is not that a bit cheap? 66% of the company for 2.4 bil USD? That would total the equity of the company to 3.6 bil. Must be too much debt.
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