Japanese chipmaker Rohm mulls joining consortium for Toshiba buyout

JAPANESE chipmaker Rohm said on Wednesday (Nov 16) it was considering joining a consortium led by private equity fund Japan Industrial Partners (JIP) to buy out Toshiba, as JIP works to consolidate its proposal.

The Nikkei newspaper reported that Kyoto-based Rohm planned to invest up to 300 billion yen (S$2.9 billion) in the proposed 2.2-trillion-yen acquisition of Toshiba, citing multiple anonymous sources.

A Rohm spokesperson confirmed that the company was considering joining the JIP consortium for the buyout, but added that nothing had been decided, including the amount of any investment.

Rohm and Toshiba are both major manufacturers of power management chips, which efficiently control electric power in cars, electronic devices and industrial equipment. It is an area where Japan still holds strength, despite its shrinking presence in the global chip industry.

JIP has contacted several Japanese companies to join the bid for Toshiba, including utilities company Chubu Electric Power and financial services group Orix, sources said.

The Nikkei stated that automaker Suzuki Motor planned to invest some tens of billions of yen in the proposed deal, while construction firm Taisei also intended to take part, though the size of its proposed investment was unknown.

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Suzuki buys automotive batteries from Toshiba.

More than 10 Japanese companies would invest a total of one trillion yen in the bid for Toshiba, with the rest to be financed by banks, and others holding no voting rights, the newspaper reported.

Toshiba, Suzuki and Taisei declined to comment. REUTERS