Trading house Sumitomo has announced its plan to make Tokyo-based major information technology service provider SCSK a wholly owned subsidiary through a takeover bid valued at some ¥882 billion ($5.77 billion).

Sumitomo already holds a 50.6% equity stake in SCSK.

The purchase price is set at ¥5,700 per share, according to the announcement on Wednesday, about 30% higher than SCSK's closing price of ¥4,334 on the same day.

By fully acquiring SCSK, Sumitomo aims to improve management efficiency and strengthen its artificial intelligence business.

The takeover bid will run from Nov. 30 to Dec. 12, and if successful, the deal would result in the delisting of SCSK's shares. SCSK has expressed its support for the takeover bid.

Sumitomo President Shingo Ueno told a news conference in Tokyo that the evolution of generative AI is transforming business operations across various fields.

"We, the two companies, want to bring our strengths to the table and lead the social transformation together," Ueno said.

SCSK President Takaaki Toma, also present at the conference, emphasized that by becoming a wholly owned unit of Sumitomo, his company "needs to participate in projects from the conceptual and planning stages" to adapt to rapid changes in the business environment.