Electronics retailer Yamada Denki Co. will take over home furnishing store Otsuka Kagu, the companies said Thursday, after the furniture chain struggled to compete with cheaper rivals and overcome a family-and-boardroom feud.
Otsuka Kagu, which could run out of cash in several months, will issue ¥4.3 billion ($39.58 million) in new shares to Yamada Denki, giving it 51.74 percent of the company, they said.
While the move is set to dilute the value of existing shares, Otsuka's stock shot up 31 percent — their daily limit — to close at ¥212.