Renesas to improve ¥218.5 billion via new shares to fund Dialog purchase
Japan's Renesas Consumer electronics Corp says it'll increase 218.5 billion yen ($1.99 billion) through a fresh share issue to greatly help the motor vehicle semiconductors maker fund its planned $6 billion purchase of Dialog Semiconductor.
In February, Renesas announced the acquisition of the Anglo-German chip designer and Apple Inc supplier in a bid to tap the growth in assisted driving technology and the roll away of broadband 5G networks that could spur connectivity across smart devices.
The two companies have been cooperating in automotive computing platforms since August.
"The issuance of innovative shares and the acquisition will enable Renesas to keep a solid financial base that may enable Renesas to execute its near future growth strategy," the business said in a assertion.
The Japanese company, that includes a 30% global market share for microcontrollers found in cars, said it expects the Dialog offer to conclude by the finish of the year, subject to regulatory approval.
Dialog specialises in power-operations chips and low strength Bluetooth products.
In a second offer, Renesas said its largest shareholder the Japanese state-backed Innovation Network Corp of Japan (INCJ) may also promote 167 million shares.
That sale will reduce its stake in the chipmaker to around 20% from 32%, an INCJ spokesman said.
INCJ rescued Renesas in 2013 with a 150 billion yen money injection in substitution for a good two-thirds stake in the business that it has progressively reduced.
Source: japantoday.com
