TOKYO (dpa-AFX) - Investment firm KKR & Co. (KKR) Wednesday announced that HKE Holdings G.K., an entity owned by investment funds managed by KKR, intends to make a tender offer for the shares of Hitachi Kokusai Electric Inc.
Hitachi Kokusai operates two business segments: a Video and Communication Solutions business and a Thin-Film Process Solutions business
In connection with the tender offer, HKE has entered into an agreement with Hitachi Ltd., the main shareholder in Hitachi Kokusai, and HVJ Holdings Co., Ltd., an entity backed by funds managed/ serviced by Japan Industrial Partners, Inc.
Under the deal terms, following a share consolidation after the tender offer, Hitachi Kokusai will acquire Hitachi's 51.67% holding of Hitachi Kokusai's common shares in a share repurchase.
Thereafter, Hitachi Kokusai will conduct an absorption-type company split pursuant to which the HKE will succeed to 100% of the Company's Thin-Film Process Solutions business. Subsequently, HKE will transfer 20% of the shares of Hitachi Kokusai to each of Hitachi and HVJ, resulting in 60%, 20%, and 20% ownership of Hitachi Kokusai's Video and Communication Solutions business for HKE, Hitachi and HVJ, respectively.
The proposed tender offer price of JPY 2,503 per share and the share repurchase price of JPY 1,710.34 per share have been determined based on negotiations among KKR, Hitachi, and JIP.
Through this joint investment, KKR will collaborate with Hitachi to further expand Hitachi Kokusai's businesses, promote overseas growth, and establish a stable business base.
HKE expects to commence the tender offer in early August 2017, subject to regulatory approvals in Japan and other jurisdictions.
Copyright RTT News/dpa-AFX