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U.S. fund KKR to suspend tender offer for Hitachi chip device unit

Kyodo

U.S. investment fund Kohlberg Kravis Roberts said Wednesday it has decided to suspend a tender offer for Hitachi Ltd.’s chip manufacturing device maker Hitachi Kokusai Electric Inc., initially planned for early August.

KKR has said it plans to conduct the tender offer for Hitachi Kokusai shares, paying ¥2,503 per share as a part of a series of transactions in a deal worth over ¥200 billion ($1.8 billion).

KKR, Hitachi and Hitachi Kokusai said a third-party committee of Hitachi Kokusai concluded that the rise in recent months of the chip device firm’s share price does not ensure “the legitimacy and propriety” of the initially agreed tender offer price.

On Wednesday, Hitachi Kokusai shares closed at ¥2,894 on the Tokyo Stock Exchange.

The three companies said talks will continue on whether to conduct the tender offer and its possible timing.

Under the agreement announced in April, Hitachi plans to sell its 51.7 percent stake in Hitachi Kokusai to KKR to streamline operations and focus on core businesses.