Japan's JSR shares jump on tender offer launch report

JSR

04/03/2024 24:36

By Sam Nussey and Makiko Yamazaki
       TOKYO, March 4 (Reuters) - Shares in Japanese chip
materials maker JSR Corp  4185.T  jumped 4.6% to 4,238 yen in
early Tokyo trading on Monday following a media report that
state-backed fund Japan Investment Corp (JIC) plans to launch a
tender offer for the shares this month. 
    JSR, a major maker of photoresists used in chipmaking,
announced last June it would be acquired by JIC, which is
overseen by Japan's industry ministry, in a $6.4 billion deal
aimed at driving consolidation within the sector.
    The tender offer was slated to begin at the end of last year
but JIC in December announced a delay to late February at the
earliest, citing a delay in a Chinese antitrust review as the
reason, saying it would update if the offer has not begun by
March-end.  
    Negotiations with Chinese authorities are now on track with
JIC planning to launch the tender offer this month, the Nikkan
Kogyo newspaper reported without citing sources.
    JSR shares have been trading at a discount to the tender
offer price of 4,350 yen per share, reflecting investor doubts
about whether the deal will achieve regulatory approval.  
    JIC's CEO Keisuke Yokoo said in December there were no
issues with the China regulator. "We expect it to be done by
March-end of the current financial year," he said.
    

 (Reporting by Sam Nussey; Editing by Kim Coghill)
 ((sam.nussey@tr.com;))