Japan Investment Corporation (JIC) is considering a plan to sell semiconductor materials manufacturer JSR to Mitsui Chemicals, with the transaction value potentially exceeding ¥1.3 trillion, according to information obtained from people familiar with the matter.
Japan Investment Corporation (JIC), a government-backed fund based in Tokyo, plans to sell JSR to Mitsui Chemicals, with the transaction value potentially exceeding ¥1.3 trillion, people familiar with the matter said. A decision on the transaction is expected as early as this month, and Mitsui Chemicals is expected to be the buyer.
The transaction is intended to reorganize Japan's semiconductor supply chain and strengthen the government's competitiveness. At the same time, market participants are concerned about whether Mitsui Chemicals can absorb an acquisition of this scale.
Mitsui Chemicals' share price fell 13% following Reuters' report. JIC acquired JSR for approximately ¥900 billion and had indicated a policy of pursuing integration in the semiconductor materials field. JSR is a leading manufacturer of photoresists for semiconductor wafers, while Mitsui Chemicals aims to expand its semiconductor materials business.
If completed, the transaction could become one of the largest deals in Japan's chemical industry. The leverage ratio is 0.75, while cash and cash equivalents stand at ¥217.8 billion and interest-bearing debt at ¥876.4 billion.
Some view these circumstances as bringing funding concerns to the fore. JIC was established under the supervision of the Ministry of Economy, Trade and Industry to invest in projects aimed at enhancing Japan's competitiveness.