Qatar Investment Authority buys stake in Japan’s Kokusai Electric

29 June 2023
Qatar Investment Authority buys stake in Japan’s Kokusai Electric

Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), has acquired a minority stake in Kokusai Electric, a Japanese semiconductor manufacturing equipment maker owned by U.S. private equity firm KKR.

The $445 billion sovereign wealth fund will invest for a stake of around 5%, according to media reports.

Qatar’s investment in “Kokusai Electric” is believed to be in the tens of billions in Japanese currency (10 billion yen equals $70 million), and the Qatari sovereign fund is expected to be a long-term investor in it, according to Japanese newspaper Nikkei,

The US Asset Management Company (KKR) acquired Hitachi Kokusai Electric from Japanese industrial group Hitachi in 2017, and spun off its semiconductor manufacturing equipment business the following year.

It is considering listing the Japanese company’s shares in the market this year.

Qatar aims to increase investments in new areas and sectors such as technology and healthcare.

Last month, QIA said it was committing up to 1 billion riyals ($275 million) towards a permanent market-making program that will enhance liquidity on the local bourse.

The sovereign wealth fund said the commitment is set to run over the next five years and will cover 90% of the size of the market capitalisation listed on the Qatar Stock Exchange (QSE).

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