Top 3 shareholders strike basic deal on buyout of Renesas
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Nov. 26 -- (Kyodo) _ Hitachi Ltd. and two other major shareholders of Renesas Electronics Corp. have reached a basic deal on a buyout plan for the struggling chipmaker with a Japanese government-backed turnaround fund, sources familiar with the agreement said Monday.
The purchase plan presented last month by the Innovation Network Corp. of Japan, involving investment totaling about 200 billion yen, is expected to be finalized in early December, the sources said.
The basic deal has been struck between the fund and the three top shareholders, Hitachi, NEC Corp. and Mitsubishi Electric Corp.
Under the plan, the fund will invest about 180 billion yen and acquire around two-thirds of Renesas' shares.
The rest will be acquired by the chipmaker's eight major clients, including Toyota Motor Corp. and Panasonic Corp.
Renesas, a leading maker of microcontrollers and other semiconductor products, is expected to cut about another 5,000 staff, the sources said.
The fund has been asking the three major shareholders to employ about 1,000 of the staff among them.
(c) 2012 Kyodo News International, Inc.
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