SAN FRANCISCOóRenesas 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.