Japan Industrial Partners Inc., and ITOCHU Corporation entered into a share transfer agreement to acquire 26% stake in Hitachi Construction Machinery Co., Ltd. from Hitachi, Ltd..
August 22, 2022
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Japan Industrial Partners Inc., and ITOCHU Corporation (TSE:8001) entered into a share transfer agreement to acquire 26% stake in Hitachi Construction Machinery Co., Ltd. (TSE:6305) from Hitachi, Ltd. (TSE:6501) for approximately ¥180 billion on January 14, 2022. Under terms of agreement, Japan Industrial and ITOCHU agreed to acquire for 55.3 million shares at price of ¥3300 each share. Prior to transaction, Hitachi holds 51.42% stake and Post completion it will hold 25.4% stake and HCHI will hold 26% stake in Hitachi Construction Machinery. In related transaction, ITOCHU Corporation (TSE : 8001) also signed a capital alliance agreement with Hitachi Construction on January 14, 2022. Transaction is subject to approval from relevant regulatory approval. The transaction is approved by the Competition Commission of India. Transaction is expected to close in June 2022. As of June 24, 2022, Transaction is expected to close during the first half of FY ending march 2023. UBS Securities Japan Co., Ltd. acted as financial advisor to Hitachi, Ltd. UBS Nishimura & Asahi acted as legal advisor for ITOCHU. Anderson Mori & Tomotsune LPC acted as legal advisor for Japan Industrial. Harshita Parmar and Mathew Geroge of TriLegal Partners acted as legal advisor for ITOCHU and Japan Industrial.
Japan Industrial Partners Inc., and ITOCHU Corporation (TSE:8001) entered into a share transfer agreement to acquire 26% stake in Hitachi Construction Machinery Co., Ltd. (TSE:6305) from Hitachi, Ltd. (TSE:6501) on August 23, 2022.
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%).
Japan Industrial Partners Inc., and ITOCHU Corporation entered into a share transfer agreement to acquire 26% stake in Hitachi Construction Machinery Co., Ltd. from Hitachi, Ltd..