Kokusai Electric shares fall 9% on KKR share sale report

Kokusai Electric

10/07/2024 02:02

By Sam Nussey
       TOKYO, July 10 (Reuters) - Shares in Kokusai Electric
 6525.T  fell 9% in early Tokyo trading on Wednesday, a day
after Reuters reported private equity firm KKR  KKR.N  plans to
cut its stake in the Japanese chip equipment manufacturer. 
    KKR plans to sell roughly half of its 43% stake in Kokusai
to investors, Reuters reported late on Tuesday, cashing in after
a blistering run for its shares, with the chip tool maker to buy
back shares in the market. 
    "I assume the stock will tank on this news, then I assume it
might rally a bit. That has been the pattern of recent offerings
with buybacks attached," wrote analyst Travis Lundy of Quiddity
Advisors, who publishes on Smartkarma.
    Shares in Kokusai, which had a market capitalisation of
roughly $8.5 billion at Tuesday's closing price, have gained
about 75% year-to-date. 
    The company is targeting improved margins and investors are
rushing to back chip equipment manufacturers amid expectations
investment in technology such as artificial intelligence will
boost the sector. 

 (Reporting by Sam Nussey; Editing by Jamie Freed)
 ((sam.nussey@tr.com;))