A leading Japanese semiconductor equipment maker has accepted a $6.4bn buyout offer from a state-backed fund in what investors have described as a “stunning” act of government intervention in the country’s chip industry.
JSR’s announcement followed a board meeting on Monday to discuss the proposal from the Japan Investment Corporation, a government-backed fund overseen by Japan’s Ministry of Economy, Trade and Industry. The move is being seen as a signal from the ministry that it plans to be directly involved in supporting companies that play an important role in national policy.
The deal would value JSR at ¥909.3bn ($6.35bn), representing a significant premium over JSR’s market capitalisation of $4.7bn at Friday’s close. The company’s shares rose as much as 22 per cent in Tokyo on Monday ahead of the announcement and following a leak to local media.
Read the full story on the Financial Times here.