Hitachi makes $5 billion offer for full control of industrial gear unit
Reuters
Published Jan 31, 2020 02:28AM ET
Hitachi makes $5 billion offer for full control of industrial gear unit
TOKYO (Reuters) - Hitachi Ltd (T:6501) said on Friday it would spend 531.1 billion yen ($4.84 billion) to take full control of listed industrial equipment unit Hitachi High-Technologies (T:8036) through a tender offer.
The Japanese industrial conglomerate is realigning its group portfolio as the government has pointed to corporate governance issues regarding dual listings of parents and subsidiaries.
Hitachi will offer 8,000 yen a share for the firm, in which it now owns a stake of 51.73%. Shares of Hitachi High-Technologies closed at 7,920 yen on Friday before the news.
The tender offer will run from Feb. 17 through April 6.
Hitachi said the takeover would benefit the unit's industrial equipment business by stirring in the group's knowhow in digital technologies.
Hitachi High-Technologies said in a statement that its board approved the takeover and recommended its shareholders tender their shares to Hitachi.
Hitachi has been among the most aggressive of Japan's conglomerates in reorganizing.
Last month, the company said it would sell listed chemicals unit Hitachi Chemical (T:4217) for 494 billion yen to Showa Denko (T:4004) and the diagnostic imaging business to Fujifilm Holdings (T:4901) for 179 billion yen.
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Written By: Reuters
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