Business / Corporate

U.S. investment fund to buy Hitachi unit for over ¥150 billion

Kyodo

U.S. investment fund KKR & Co. is expected to buy Hitachi Ltd.’s power tool manufacturing subsidiary for more than ¥150 billion ($1.3 billion), sources said Wednesday.

The global investment firm holds the priority negotiation rights over the acquisition of Hitachi Koki Co. and an agreement could be reached as early as next month, the sources said.

The Hitachi group holds a more than 50 percent stake in Hitachi Koki.

The fund is likely to purchase all the shares in the Hitachi subsidiary through a tender offer after sealing a deal on the acquisition.

Hitachi, the maker of electric machinery and infrastructure systems, has been considering selling its machine tool and semiconductor manufacturing equipment businesses as part of efforts to streamline its diversified operations.

Hitachi Koki said in a statement released Wednesday, “It is true that we are discussing our growth strategy with Hitachi, but nothing has yet been decided.”

Hitachi Koki posted a consolidated net profit of ¥1 billion in the fiscal year that ended in March 2016, on sales of ¥141.5 billion.

Coronavirus banner