Govt-backed INCJ to sell more Renesas shares

April 3, 2018

Tokyo- Innovation Network Corp. of Japan will sell part of its shareholdings in major chipmaker Renesas Electronics Corp. , informed sources said Tuesday.

The government-backed investment fund will sell in the market around 12 percent of Renesas shares in terms of voting rights to lower its stake to about 33 percent from the current 45.6 percent, according to the sources.

INCJ is expected to continue to have a veto on merger or other important proposals.

Through the reduction of its ownership, the fund plans to lessen its involvement in Renesas' management as the chipmaker's turnaround is now in sight, thanks to growing demand for semiconductors.

Business at Renesas deteriorated after its key plant in Ibaraki Prefecture, eastern Japan, was damaged by the March 2011 powerful earthquake.

INCJ acquired an equity stake in the chipmaker to support its reconstruction. Its ownership fell below 50 percent after the fund sold its shareholdings of some 4.5 percent in terms of voting rights to auto parts maker Denso Corp. in March. Jiji Press