Hitachi (HTHIY) , a Japanese technology group, will sell chipmaking unit Hitachi Kokusai Electric to private equity firms KKR (KKR) - Get KKR & Co. Inc. Class A Report and Japan Industrial Partners, Nikkei Asian Review reports.
The U.S. and Japanese fund together intend to purchase all Hitachi Kokusai shares through a tender offer estimated to exceed 200 billion yen, or $1.8 billion.
The open-market takeover will take effect as soon as next month, the report said. Consequently, Hitachi Kokusai is slated for de-listing, and Hitachi will sell its entire 50%-plus stake.
Both shares of Hitachi and KKR were higher during afternoon trading on Tuesday following the report.
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