Hitachi, Ltd. made an offer to acquire remaining 48.3% stake in Hitachi High-Technologies Corporation from a group of shareholders for approximately ¥530 billion.
January 30, 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 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. made an offer to acquire remaining 48.3% stake in Hitachi High-Technologies Corporation from a group of shareholders for approximately ¥530 billion.