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Perry Capital Offers to Buy Stake in NEC Electronics

U.S. investment fund Perry Capital has offered to buy an additional 25% stake in struggling Japanese chip maker NEC Electronics from its parent company at a premium of about 65%, the Nikkei newspaper said on Wednesday.

Perry Capital, NEC Electronics' third-largest shareholder with a 4.5% stake, has been urging NEC Corp. to reduce its 70% holding in its chip unit to less than 50% to boost its stock price, the report said.

The U.S. investment firm told NEC late on Tuesday it was willing to buy 30.87 million shares in NEC Electronics for about 154 billion yen ($1.25 billion), or 5,000 yen a share, according to the newspaper.

That would be a 65% premium on NEC Electronics' average share price over the past three months, the Nikkei said.

However, NEC President Kaoru Yano told reporters on Tuesday that the parent company planned to keep its stake in NEC Electronics even after the chipmaker said it could be delisted by the Tokyo bourse because more than 75% of its shares are held by a few "special" shareholders.

Another U.S. fund, NWQ Investment Management, is also pressuring NEC to cut its stake in the chip subsidiary.