TOKYO — (BUSINESS WIRE) — September 4, 2013 — Renesas Electronics Corporation (Representative Director, Chairman and CEO, Hisao Sakuta, hereafter "Renesas") and its wholly-owned subsidiary Renesas Mobile Corporation (Chief Executive Officer: Hideaki Chaki, hereafter "RMC") today announced that it decided to transfer all the shares of Renesas Mobile Europe Oy, RMC's subsidiary (hereafter "RME"), and Renesas Mobile India Private Limited, RME's subsidiary (hereafter "RMI") to Broadcom Corporation (hereafter "Broadcom") (together with certain assets related to its LTE modem technology hereafter "Transfer"), and executed a definitive agreement (hereafter "Definitive Agreement") with Broadcom to effect such transfer, upon the terms and subject to the conditions of the agreement.
1. Reason for Transfer
Renesas and RMC announced on June 27 that they would stop development activities and sales expansion of the 4th generation wireless modem developed by RME and RMI (hereafter "LTE Modem"), and work towards the termination of this business. After the announcement, Renesas and RMC had started performing the steps necessary to end these activities. During the process, however, Broadcom proposed Renesas and RMC to acquire the LTE Modem technology. Reviewing this proposal, Renesas and RMC reached a conclusion that it would be desirable for all the stakeholders to effect the Transfer to Broadcom, a prominent technology innovator and global leader in semiconductors for wired and wireless communications.
This transaction enables Renesas and RMC to quickly exit from the LTE Modem business and focus more on their core business, while enabling Broadcom to strengthen its semiconductor business for communications. Therefore, this transaction is highly expected to improve corporate values of both parties.
2. Outline of Subsidiaries Transferred
(1) Renesas Mobile Europe Oy |
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(a) Company Name | Renesas Mobile Europe Oy | |||||||||
(b) Headquarter | Helsinki, Finland | |||||||||
(c) Title, Name of Representative | Managing Director, Juha Heikki Tenhunen | |||||||||
(d) Business | Development of LTE Modem, etc. | |||||||||
(e) Capital | 35 million Euro | |||||||||
(f) Founded | September 1, 2010 | |||||||||
(g) Major Shareholders and
Percentage Held |
RMC (100.00%) | |||||||||
(h) Relationship with Renesas | Capital | RME is a wholly owned subsidiary of RMC, a wholly owned subsidiary of Renesas. | ||||||||
Human | Three employees of Renesas concurrently serve as Members of the Board. | |||||||||
Business | Renesas provides RME with short-term loans, while a subsidiary of Renesas contract out the design and development of LTE Modem, etc. to RME. | |||||||||
(i) Financial Situation in the past three years | ||||||||||
FY2010 | FY2011 | FY2012 | ||||||||
Shareholders' Equity (Millions of Euro) | 36 | 41 | 47 | |||||||
Total Assets (Millions of Euro) | 75 | 71 | 75 | |||||||
Shareholders' Equity per Share (Euro) | 3,581 | 4,070 | 4,708 | |||||||
Net Revenue (Millions of Euro) | 49 | 164 | 166 | |||||||
Operating Income (Millions of Euro) | 1 | 7 | 7 | |||||||
Net Income (Millions of Euro) | 1 | 5 | 6 | |||||||
Net Income per Share (Euro) | 71 | 489 | 638 | |||||||
Dividends per Share (Euro) | 0 | 0 | 0 |
(2) Renesas Mobile India Private Limited |
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(a) Company Name | Renesas Mobile India Private Limited | |||||||||
(b) Headquarter | Bangalore, India | |||||||||
(c) Title, Name of Representative | Managing Director, Ilkka Savimäki | |||||||||
(d) Business | Development of LTE Modem, etc. | |||||||||
(e) Capital | 340 million Rupee | |||||||||
(f) Founded | October 13, 2010 | |||||||||
(g) Major Shareholders and
Percentage Held |
RME (99.9974%)
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(h) Relationship with Renesas | Capital | RMI is a subsidiary of RME, a wholly owned subsidiary of RMC. | ||||||||
Human | One employee of Renesas concurrently serves as a Member of the Board. One Member of the Board of Renesas' subsidiary concurrently serves as a Member of the Board | |||||||||
Business | A sub-subsidiary of Renesas contract out the design and development of LTE Modem, etc. to RMI. | |||||||||
(i) Financial Situation in the past three years | ||||||||||
FY2010 | FY2011 | FY2012 | ||||||||
Shareholders' Equity (Millions of Rupee) | 365 | 448 | 545 | |||||||
Total Assets (Millions of Rupee) | 507 | 549 | 656 | |||||||
Shareholders' Equity per Share (Rupee) | 94 | 116 | 141 | |||||||
Net Revenue (Millions of Rupee) | 279 | 900 | 1,005 | |||||||
Operating Income (Millions of Rupee) | 61 | 212 | 251 | |||||||
Net Income (Millions of Rupee) | 25 | 83 | 97 | |||||||
Net Income per Share (Rupee) | 7 | 21 | 25 | |||||||
Dividends per Share (Rupee) | 0 | 0 | 0 |