TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today announced its decision to sell partial shares it owns in Renesas Easton Co., Ltd. ("Renesas Easton") to Renesas Easton as described below. As a result of the sale, Renesas Easton will no longer be Renesas’ affiliated company accounted for by the equity method.
1. Overview of the share transfer
Renesas will, for the purpose of optimizing its distribution of management resources, sell 2,500,000 shares of stocks it owns in Renesas Easton to Renesas Easton effective August 1, 2018. As a result of this share transfer, Renesas' ratio of voting rights holdings in Renesas Easton will become 6.1 percent and Renesas Easton will no longer be Renesas’ affiliated company accounted for by the equity method.
(Note) Renesas will commission the sales of shares through Off-Auction Own Share Repurchase Trading System (ToSTNeT-3), The number of stocks sold may be reduced upon purchase order by a third-party other than Renesas.
2. Outline of the affiliated company accounted by the equity method
|1||Name||Renesas Easton Co., Ltd.|
|2||Address||2-1, Kanda Tsukasa-machi, Chiyoda-Ku, Tokyo.|
|3||Title and name of representative||Hitoshi Ishii, President, Representative Director|
|4||Business||Sale of integrated circuits, semiconductor devices, display devices, and other electronic components and equipment. Software development. Design and development of electronic equipment.|
|6||Date founded||December 23, 1954|
|7||Relationship between companies listed on stock exchanges and this company||Financial relationship||
Renesas holds 3,964,100 shares in Renesas Easton (Percentage of voting rights: 15.0%), and Renesas Easton is Renesas’ affiliated company accounted for by the equity method. (as of July 31, 2018)
|Business relationship||Renesas Easton purchases integrated circuits and semiconductor devices from Renesas as its main supplier.|
3. Number of shares to be sold and status of share holdings before and after sale
|1. Number of shares held before sale||3,964,100 shares (voting rights: 15.0%)|
|2. Number of shares sold||2,500,000 shares|
|3. Number of shares held after sale||1,464,100 shares (voting rights: 6.1%)|
4. Future prospect
Renesas expects to complete the above-mentioned sale of shares on August 1, 2018, and the company is currently assessing the impact the sale will have on its consolidated financial results. If and when a material impact is expected, Renesas will make an announcement once the details of the impact become available.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live—securely and safely. A global leader in microcontrollers, analog, power and SoC products and integrated platforms, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics, Office Automation and Information Communication Technology applications to help shape a limitless future. Learn more at renesas.com.