US private equity fund to invest in Renesas

KKR unveils plans to pump US$1.27 billion into the Japanese chipmaker, buying its new shares through private placement, and has presented the proposal to Renesas' banks and major shareholders.

U.S. private equity fund KKR plans to invest around 100 billion yen (US$1.27 billion) in Japanese chipmaker Renesas. 

The U.S. investor will buy new shares from Renesas through a private placement, Reuters reported on Wednesday, citing sources familiar with the matter. KKR presented the plan to Renesas' main banks and its three major shareholders NEC, Hitachi and Mitsubishi Electric on Tuesday, one of the sources said.

Renesas told the newswire no official statement had been made by the company while KKR declined to comment.

The struggling Japanese chipmaker in July announced plans to cut more than 5,000 jobs, or 12 percent of its global workforce , as it aims to reduce losses following declining sales figure. Renesas also expanded its microcontroller outsourcing agreement with Taiwan Semiconductor Manufacturing Company (TSMC) in May to broaden business continuity plans.

Media reports in July also speculated TSMC and Renesas were in talks of a possible deal for the Taiwanese chip manufacturer to acquire a wafer plant in northeastern Japan along with 1,400 employees, but TSMC's founding chairman Morris Chang had dismissed the speculations .