Japan government-backed fund to take stake in Landis+Gyr

The logo of Swiss-based meter maker Landis+Gyr is seen at an office building in the Swiss town of Zug May 19, 2011.

TOKYO (Reuters) - A fund backed by the Japanese government will invest $680 million for a 40 percent equity stake in unlisted Swiss-based meter maker Landis+Gyr, limiting the outlay by Toshiba Corp (6502.T) for the acquisition to $1.62 billion including debt.

When Toshiba announced plans to acquire Landis+Gyr in May it valued the deal at $2.3 billion including debt, but did not indicate how it would finance the transaction.

Toshiba said in a statement on Monday that Japan's Innovation Network Corp, a fund set up by the government and the private sector, would acquire a 40 percent stake through a special-purpose vehicle established in Switzerland.

Toshiba said it would take on 60 percent of the equity for $1.02 billion and assume $600 million of net debt, bringing its total coast to $1.62 billion. The total value of the deal was unchanged from May at $2.3 billion.

Toshiba said all regulatory approvals were completed in early July and that it planned to complete the transaction by the end of the month.

(Reporting by Nathan Layne; Editing by Chris Gallagher)