Hitachi makes 531.1b yen offer for full control of industrial gear unit

[TOKYO] Hitachi said on Friday it will spend 531.1 billion yen (S$6.63 billion) to take full control of listed industrial equipment unit Hitachi High-Technologies (HHT) through a tender offer.

The Japanese industrial conglomerate is realigning its group portfolio as the government has pointed to corporate governance issues regarding dual listings of parents and subsidiaries.

Hitachi will offer 8,000 yen a share for the firm, in which it now owns a stake of 51.73 per cent. Shares of HHT closed at 7,920 yen on Friday before the news.

The tender offer will run from Feb 17 through April 6.

Hitachi said the takeover would benefit the unit's industrial equipment business by stirring in the group's knowhow in digital technologies.

HHT said in a statement that its board approved the takeover and recommended its shareholders tender their shares to Hitachi.

Hitachi has been among the most aggressive of Japan's conglomerates in reorganising.

Last month, the company said it would sell listed chemicals unit Hitachi Chemical for 494 billion yen to Showa Denko and the diagnostic imaging business to Fujifilm Holdings for 179 billion yen.

REUTERS