DLA Piper has advised client TowerJazz Japan on the completion of a joint venture with Panasonic Corporation.
The joint venture has received Panasonic’s semiconductor manufacturing processes, at its three factories in Hokuriku, Japan, which will be delivered by TowerJazz for a period of five years. TowerJazz is holding 51 per cent and Panasonic is holding 49 per cent of the joint venture.
TowerJazz issued 870,454 ordinary shares to Panasonic, worth approximately $7.5m (£4.5m), in consideration for the 51 per cent equity stake that the company has in the joint venture. As a result of holding these shares, Panasonic becomes a minority shareholder, holding approximately 1.8 per cent of TowerJazz ordinary shares.
TowerJazz will continue Panasonic’s production of semiconductors as a subcontractor for Panasonic, while also being able to offer its own customers digital technology at an increased capacity and growing its revenue by approximately $400m per annum. The joint venture will allow Panasonic to leverage TowerJazz’s business to capture out-of-group sales.
The deal was led by Hajime Iwaki (partner, corporate) and supported by Makiko Takewaki (senior associate, tax), Keiji Nasuda (associate, employment) and Keitaro Uzawa, (associate, tax). Ryo Takizawa (associate, litigation and regulatory), Kayo Ishikawa (associate, tax) and Ailin Sekito (notary, corporate) also assisted the due diligence process and documentation.
David Schapiro and Eliran Furman led the deal fom Yigal Arnon.