By Sam Nussey
TOKYO (Reuters) – Shares in Kokusai Electrical fell 9% in early Tokyo buying and selling on Wednesday, a day after Reuters reported non-public fairness agency KKR plans to chop its stake within the Japanese chip tools producer.
KKR plans to promote roughly half of its 43% stake in Kokusai to buyers, Reuters reported late on Tuesday, cashing in after a blistering run for its shares, with the chip device maker to purchase again shares out there.
“I assume the stock will tank on this news, then I assume it might rally a bit. That has been the pattern of recent offerings with buybacks attached,” wrote analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma.
Shares in Kokusai, which had a market capitalisation of roughly $8.5 billion at Tuesday’s closing value, have gained about 75% year-to-date.
The corporate is focusing on improved margins and buyers are speeding to again chip tools producers amid expectations funding in know-how reminiscent of synthetic intelligence will increase the sector.
