KKR to buy Hitachi Kokusai Electric for $2.3 billion

TOKYO (Reuters) - U.S. buyout firm KKR said on Wednesday it has agreed to buy Hitachi Ltd's electronic equipment unit for 257 billion yen ($2.3 billion) with investment fund Japan Industrial Partners Inc (JIP).

KKR and JIP will pay 2,503 yen for each Hitachi Kokusai Electric Inc share, a 6.4 percent discount from Wednesday's close, according to a joint statement from KKR and Japan Industrial Partners.

Hitachi Ltd, the largest shareholder in Hitachi Kokusai, said in a separate statement it would reduce its ownership to 20 percent after the deal is completed.

($1 = 111.1700 yen)

(Reporting by Junko Fujita; Editing by Christian Schmollinger)