Japanese company Renesas Electronics announced that the board of directors has agreed to issue 196.4 million new shares. The secondary offering is intended to raise the funds needed to finance the large purchase announced in February.
Recall that then the companies Renesas Electronics and Dialog Semiconductor announced the signing of an agreement under the terms of which Renesas will acquire all Dialog shares for cash at a price of 67.50 euros per share. The total transaction amount is approximately 4.9 billion euros. At the same time it became known that Renesas plans to finance the deal through bank loans and the issue of new shares.
Renesas expects to attract $ 2 billion through the new issue. In a press release published by the company, it is said that the entire amount will be used to partially secure the specified transaction.
In April, the purchase was already approved by a meeting of shareholders of Dialog Semiconductor. Now it is necessary to obtain regulatory approvals. The completion of the transaction is expected in the current calendar year.