Nissho Electronics Corp. said Monday it will form a capital tieup with Sumisho Electronics Co. later this month with the long-term aim of integrating their businesses.
Through the deal, the two companies and trading house Sumitomo Corp., the parent of Sumisho Electronics, hope to become a leader in information technology solution and service businesses, it said.
Nissho Electronics, an affiliate of trading firm Nissho Iwai Corp., will purchase on Feb. 21 a little more than 3.28 million new shares to be issued by Sumisho Electronics, making it the second-largest shareholder with a 19.88 percent stake, it said.
The tieup will also involve the purchase on Feb. 20 of 5.68 million new shares in Nissho Electronics by Sumitomo, making Sumitomo the second major shareholder with a 19.88 percent stake.
Currently, Sumisho Electronics, listed on the Jasdaq over-the-counter market, is owned 76.62 percent by Sumitomo. IT-related ITX Corp. is the top shareholder in Nissho Electronics, traded on the first section of the Tokyo Stock Exchange, with a 54.85 percent stake.