ANNOUNCEMENT 10 Dec 2012

In December 2012, the government of Japan announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 10 Dec 2012 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On 10 December 2012, the Innovation Network Corporation of Japan (INCJ) announced its decision to lead the creation of a (government-backed) consortium to gather JPY 150bn ($1.8bn) and invest in the struggling Japanese chipmaker Renesas Electronics Corp. The INCJ and the consortium will underwrite the issuance of new shares, acquiring 75% (69.2% to the INCJ alone) of the total shares issued and outstanding in Renesas.

June 20th, 2017 Update: The INCJ sold 317,688,800 shares in Renesas Electronics bringing the INCJ capital equity in Renesas Electronics from 69.2% to 50.1%. The original investment in Renesas Electronics by INCJ was 150 billion yen (1.8 billion USD), after reducing the total investment to 50.1%, INCJ's approximate investment capital is 108 billion yen (941 million USD)


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 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.

 

AFFECTED SECTORS