Hitachi, Ltd. completed the acquisition of remaining 48.3% stake in Hitachi High-Technologies Corporation from a group of shareholders.
April 05, 2020
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Hitachi, Ltd. (TSE:6501) made an offer to acquire remaining 48.3% stake in Hitachi High-Technologies Corporation (TSE:8036) from a group of shareholders for approximately ¥530 billion on January 31, 2020. As per the offer, Hitachi, Ltd. will acquire remaining 66.39 million shares at ¥8000 per share. The transaction will be financed through cash on hand and borrowings for ¥2 trillion to ¥2.5 trillion. Post completion, Hitachi High-Technologies Corporation will become wholly owned subsidiary of Hitachi, Ltd. Hitachi, Ltd. have to acquire minimum of 20.55 million shares through offer. The offer period will commence from February 17, 2020 to April 6, 2020. Mori Hamada & Matsumoto LPC acted as legal advisor to Hitachi, Ltd. Deloitte Tohmatsu Financial Advisory LLC provided fairness opinion to the special committee appointed by Hitachi High-Technologies Corporation. Nomura Securities Co., Ltd. acted as financial advisor while Anderson Mori & Tomotsune LPC acted as legal advisor to Hitachi High-Technologies Corporation. Keiji Hatano of Sullivan & Cromwell LLP (Japan) acted as legal advisor to Hitachi High-Technologies Corporation in the transaction.
Hitachi, Ltd. (TSE:6501) completed the acquisition of remaining 48.3% stake in Hitachi High-Technologies Corporation (TSE:8036) from a group of shareholders on April 6, 2020. Under the offer, 53.4 million shares were acquired. Hitachi also intends to conduct a series of procedures to become sole shareholder of Hitachi High-Technologies. The minimum number of shares have been acquired as on April 7, 2020. Following the process Hitachi High-Technologies will be delisted. Mistubhishi UFJ Morgan Stanley Securities Co. ltd and au Kabucom Securities Co.Ltd were in charge of settlement of offer. The settlement is expected to commence on April 13, 2020.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
