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Shares of Kokusai Electric Tumble on Reports of KKR's Stake Sale
Shares in Kokusai Electric Corp. experienced significant declines, dropping as much as 12%, following reports that private equity firm KKR & Co. plans to sell a substantial portion of its stake in the Japanese chip equipment manufacturer. The drop marks the steepest fall since Kokusai's public listing in October.
According to Reuters, KKR aims to divest about half of its 43% ownership in Kokusai, with the company itself poised to repurchase these shares from the market. This strategic move comes despite the notable increase in Kokusai’s stock value, which had more than tripled post-IPO, driven primarily by heightened investor enthusiasm for chipmaking technology pivotal to artificial intelligence infrastructure.
Neither representatives from KKR nor Kokusai Electric have provided any comments regarding the reported sale. The Japanese company's initial public offering on the Tokyo Stock Exchange in October marked the largest IPO in Japan since 2018. The listing heightened awareness about the integral role of chipmaking in exerting control over AI and supercomputing resources globally.
Earlier this week, Kokusai Electric disclosed that it was exploring various strategies to bolster its capital structure, including the possibility of conducting a secondary share sale and buyback. This announcement, coupled with KKR’s reported selloff, has significantly impacted market sentiment surrounding the company's shares.
