TOKYO (Reuters) - Hitachi Ltd <6501.T> said on Wednesday it was considering selling Hitachi Koki Co <6581.T>, after a media report that it was in talks to offload the power tools unit to KKR & Co
A sale would enable Hitachi to focus further on its main business segments like infrastructure, after shedding several noncore operations in recent years to bolster its profitability.
The Japanese conglomerate said in a statement that it was considering various options to strengthen its business, including the sale of Hitachi Koki, but that nothing had been decided. It did not name any prospective buyers.
The Nikkei business daily reported that negotiations between Hitachi and U.S. private equity firm KKR were in the final stages and that an official agreement could be reached next month.
KKR plans to buy all of Hitachi Koki's outstanding shares through a tender offer, and the company will be delisted from the Tokyo Stock Exchange, the Nikkei said without citing sources.
Also Read
At 0023 GMT shares of Hitachi Koki were untraded amid heavy buy orders, indicated up 5 percent from Tuesday's close.
Hitachi shares had gained 1.1 percent.
($1 = 117.4900 yen)
(Reporting by Chris Gallagher; Editing by Richard Pullin)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
