LEAD: Hitachi to sell Japan Servo in response to Nidec buyout bid.
(EDS: ADDING INFO, CHANGING DATELINE)
Hitachi Ltd. said Tuesday it will sell most of its equity stake in its motor-making unit, Japan Servo Co., in response to motor manufacturer Nidec Corp.'s planned takeover bid to make the Hitachi unit its subsidiary.
Hitachi said it will sell a 46.47 percent portion of its 51.37 percent stake in Japan Servo, listed on the Second Section of the Tokyo Stock Exchange, to Nidec after the Kyoto-based firm launches a public tender offer Wednesday.
Under the deal, Nidec aims to enhance its motor business by utilizing Japan Servo's strength in the precision motor field, with Hitachi agreeing to sell the bulk of its shareholdings in the Tokyo-based company as part of its group restructuring.
During the 21-day buyout bid until April 12, Nidec, listed on the TSE's First Section, said it will offer 260 yen per Japan Servo share. That compares with Japan Servo stock's closing price of 202 yen Monday.
Through the public tender offer, Nidec aims to acquire at least 51.77 percent of Japan Servo's outstanding shares with shareholder voting rights. In the case of buying the minimum number of shares in Nidec's plan, the purchase cost totals about 4.7 billion yen.
Depending on how much Nidec purchases Japan Servo's shares, Japan Servo may be delisted from the TSE's Second Section due to the bourse's delisting rules.
Capitalized at 2.55 billion yen, Japan Servo makes and sells motors and related equipment. The Tokyo-based company posted 26.5 billion yen in sales in fiscal 2005, which ended in March 2006, and had 560 employees as of the end of the business year.
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|Publication:||Japan Weekly Monitor|
|Date:||Mar 19, 2007|
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