CG Power and Industrial on Thursday, February 9, said it has teamed up with Renesas America Inc and Stars Microelectronics (Thailand) Public Co in a joint venture agreement and proposed to set up an outsourced semiconductor assembly and testing facility in India.
The same is subject to the required regulatory and statutory approvals, including from the ministry of electronics and information technology, the Indian government and subsidy from Central and state governments, as applicable, the company said in a stock exchange filing.
CG Power, Renesas and Stars are to invest, in one or more tranches of up to $205 million, $15 million and $2 million, respectively, as equity capital of the JV company, which will represent around 92.34%, 6.76% and 0.9%, respectively, the exchange filing stated.
The exchange filing said CG Power has also signed an agreement on technology and services, an offtake and manufacturing agreement with Renesas Electronics Corporation in Japan, and a technology know-how sharing and technical support agreement with Stars.
The joint venture agreement will come into effect after the proposed project transaction is approved. "The closing of the proposed project transaction is also subject to satisfactory completion of the conditions precedents as contained in the joint venture agreement," it added.
CG Power and Industrial Solutions shares ended 1.53% lower at ₹430.5 apiece on Thursday, February 8, 2024. The stock has gained 38.22% in the past year.
(Edited by : Hormaz Fatakia)
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