ANNOUNCEMENT 18 Nov 2013

On November 18th, 2013, the Innovation Network Corporation of Japan (INCJ) transferred their shares of Japanese cooperation Royal Gate Co., Ltd to Japanese company Hinoki.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

INCJ (2013). 株式会社ロイヤルゲート:B2B決済プラットフォーム「PAYGATE(R)」を開発・運営する株式会社ロイヤルゲートへの出資を決定 ("Royal Gate Co., Ltd.: Decided to invest in Royal Gate Co., Ltd., which develops and operates B2B payment platform "PAYGATE (R)"). Available at
https://www.incj.co.jp/news/2013/20131015.html

INCJ (2016). 株式会社ロイヤルゲート:株式会社ロイヤルゲートの株式譲渡について ("Royal Gate Corporation: About the transfer of shares of Royal Gate Co., Ltd.")
https://www.incj.co.jp/news/2016/20161118.html

More information about INCJ's relation with the Royal Gate can be found at
https://www.incj.co.jp/performance/upload/docs/1418030919.02.pdf

Inception date: 18 Nov 2013 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On October 15th, 2013, INCJ originally signed the 1 billion yen (10 million USD) investment with Royal Gate Co., Ltd, but in 2016 Japanese corporation Hinoki had the INCJ stocks transferred to them. INCJ determined that to further the growth of Royal Gate it would be best to assign the stocks to Hinoki.

Notably, as of November 18th, 2016, the Innovation Network Corporation of Japan (INCJ) transferred their 1 billion yen (10 million USD) investment contract with Royal Gate Co., Ltd to Hinoki. The investment relates to the Royal Gate's smart device payment platform for B2B transactions and the accumulation of big data.

About the Innovation Network Corporation of Japan (INCJ)
In 2009, INCJ was created as a public-private investment fund to financially support industries "next-generation businesses". INCJ supports projects that "combine technologies and varied expertise across industries and materialize open innovation.". According to the INCJ website, the fund has an investment capacity of up to USD 20 billion. Although characterized as a public-private partnership, in fact only 0.1 billion of the 2.6 billion USD invested in the fund was provided by the private sector. The rest came from the Japanese government. Of the 0.1 billion USD said to be contributed by the private sector, 13.6 million USD was in fact provided by the Development Bank of Japan, a state-owned bank. 

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AFFECTED PRODUCTS