Renesas Electronics Corp. (6723) reached a final agreement with its three biggest shareholders for 50 billion yen ($639 million) of loan support, Kyodo reported, without citing anyone.
NEC Corp. (6701) and Hitachi Ltd. (6501), two of the three biggest shareholders of the world’s largest maker of microcontrollers for cars, said last month they plan to support Renesas as it seeks financial aid following at least five straight quarterly losses. Mitsubishi Electric Corp. (6503) is the other large shareholder, and combined they own 91 percent of Renesas.
Yoichi Kobayashi, a Renesas spokesman, said the company doesn’t comment on speculation. Takehiko Kato, an NEC spokesman, and Tamie Nagamoto, a Hitachi spokeswoman, both declined to comment on the report. A Mitsubishi Electric official, who refused to give his name citing company policy, also declined to comment.
Renesas, after posting losses amid a slowdown in demand for chips used inside TVs and computers, is said to have asked for 100 billion yen in assistance. Banks including Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. (8411) and Sumitomo Mitsui Trust Holdings Inc. (8309) have agreed to continue offering almost 50 billion yen in lines of credit to Renesas, according to two people with knowledge of the matter.
Renesas fell 3.8 percent to 226 yen at the close of trading in Tokyo, taking the year-to-date decline to 52 percent.
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