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

Dai Nippon Printing Co

12/12/2023 06:27

(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. 
        
  
        ($1 = 145.4400 yen)

 (Reporting by Mariko Katsumura and Chang-Ran Kim; Editing by
Shri Navaratnam and Tom Hogue)
 ((ran.kim@thomsonreuters.com; +81-3-4520-1228;))