Japan Investment Corp. To Buy JSR Corp. For JPY 1T

The Nikkei reported on Saturday that Japan Investment Corp is in talks to buy JSR Corp, the country's largest chipmaker, for about 1 trillion yen ($6.96 billion).

As per the report, the fund intends to make a tender offer as soon as this year after clearing the buyout with domestic and foreign antitrust authorities.

According to Nikkei, if the deal goes through, JSR will be delisted from the Tokyo Stock Exchange as soon as 2024.

The company, founded in 1957 as a government-backed synthetic rubber manufacturer, now provides photoresists to global chipmakers. They are employed in the transfer of circuit patterns to semiconductor wafers.

To purchase JSR, JIC intends to establish a new company with 500 billion yen in capital, while Mizuho Bank will provide another 400 billion yen in finance.

The fund plans to raise 100 billion yen via preferred shares and subordinated loans underwritten by various banks, according to Nikkei.

The deal would grant JSR, with its significant 30 per cent share of the global photoresist market, greater freedom for expansion, without being constrained by worries about stock market performance, Nikkei said.