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Fujitsu to Sell Semiconductor Packaging Unit Shinko Electric Industries for $4.8 Billion

f 6702.TSE Blue Chip 150
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Fujitsu Corporation, a prominent player in Japan’s technology sector, has announced a strategic move to divest its non-core assets, this time parting ways with its Tokyo-listed semiconductor packaging unit, Shinko Electric Industries. In a substantial deal worth 700 billion yen, a consortium led by Japan Investment Corp (JIC) is set to acquire Shinko Electric Industries.

The consortium, which includes Dai Nippon Printing and Mitsui Chemicals, plans to launch a tender offer for the shares not currently held by Fujitsu. The offer, valued at 5,920 yen per share, presents a 13% premium compared to Monday’s closing price. Shinko Electric Industries has expressed its support for the acquisition and recommended that shareholders accept the offer.

This transaction will ultimately take Shinko Electric Industries private, with JIC holding an 80% stake, Dai Nippon with 15%, and Mitsui Chemicals with 5%. It aligns with Fujitsu’s ongoing effort to streamline its operations and focus on its core IT business.

Fujitsu’s Chief Financial Officer, Takeshi Isobe, emphasized the importance of prioritizing IT services as the company’s core, noting that separating non-core operations is beneficial for their growth.

Completing this reorganization is expected to enhance Fujitsu’s outlook and attractiveness to investors, especially in a competitive IT industry where the company has faced increasing rivalry. Fujitsu aims to address governance issues and strengthen its position as a leader in Japan’s IT market.

Meanwhile, Shinko Electric Industries, under JIC’s umbrella, will focus on developing cutting-edge packaging substrates and expanding production facilities in the ever-evolving chip packaging industry, reinforcing Japan’s role in the global semiconductor market.

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