July 04, 2012

INCJ Tops Up Capital

Innovation Network Corporation of Japan (INCJ) has increased its capital base by allocating shares to 8 Japanese companies - Cannon, Sony, Toyota, Marubeni, Sumitomo Mitsui Bank, Mitsubishi Chemical, Mitsusbishi Heavy Industries and Mitsubishi Corp with JPY 500 million each totaling to JPY 4 billion (USD 50 million). While this brings INCJ's private sector shareholder ownership to JPY 13 billion (USD 160 million) by 26 companies, it merely accounts for 8.3 % of its total capitalization. The Government has been continuously adding capital to INCJ and it is now reaching USD 1.8 billion. As the result, the private sector ownership has been on decline, obscuring INCJ's position as a public-private entity. Considering its total investable capital of over USD 20 billion, which is made available to INCJ through the Government guaranteed loans, the USD 50 million share allotment is nothing but a symbolic act.

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