Further to letter dated 22nd November 2023, it is informed that CG Power and Industrial Solutions Limited has on 8th February, 2024 entered into a Joint Venture Agreement with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd. and other related documents for setting up Outsourced Semiconductor Assembly and Testing (OSAT) facility in India, subject to necessary regulatory and statutory approvals, including approval of the Ministry of Electronics and Information Technology (MeitY), Government of India and subsidy from central and state governments, as applicable. The JVA will come into effect on the approval of the proposed project.

The closing of the Proposed Project Transaction is also subject to satisfactory completion of the conditions precedents as contained in the JVA. CG has also signed: Agreement on Technology and Services, and Offtake and Manufacturing Agreement with Renesas Electronics Corporation, Japan; and Technology Know-How Sharing And Technical Support Agreement with Stars. CG, Renesas and Stars to subscribe in one or more tranches, subject to satisfaction of conditions precedent up to USD 205 Million, USD 15 Million, USD 02 Million respectively, towards equity capital of the JV Company to be formed representing approximately 92.34%, 6.76%, and 0.90% respectively; The establishment of JV Company, investment and establishment of OSAT facility are subject to necessary regulatory and statutory approvals and satisfactory completion of conditions precedents agreed between the parties.

Significant terms of the agreement include approval /receipt of subsidy from central and state governments, as applicable, board composition, reserved matters, pre- emptive and additional subscription rights, right of first offer, tag along right, put option, call option.