Global private equity and venture capital news and research

KKR in talks to rescue struggling Japanese chipmaker Renesas

29 Aug 2012

Global buyout giant KKR is reported to be in talks to invest about JPY100bn ($1.3bn) in return for more than a 50 per cent stake in embattled Japanese chipmaker Renesas Electronics Corp.

The investment is expected to speed up the listed company’s restructuring process and provide a lifeline as it battles against foreign rivals and lower prices, Reuters reported on Wednesday.

A deal would see KKR buy new shares of Renesas through a private placement, and would mark the US-based private equity giant’s biggest investment in the country.

KKR executives this week tabled the proposal to Renesas’ lenders and NEC Corp, Hitachi Ltd and Mitsubishi Electric Corp, its three largest shareholders.

The company is understood to be planning a restructuring process that would see 12 per cent of its workforce laid off and half of its domestic plants sold off, the report added.

KKR is also said to have been shortlisted for a second round of bids for a stake in Indonesia’s largest private hospital operator, in a deal that could fetch as much $300m.

The firm is currently on the road raising for its second pan Asia fund, a $6bn vehicle that will rank as the biggest ever raised to target investments in the region. The fund has raised over $3bn to date.

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