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Hitachi Eyes ¥100 Billion Machinery Stake Sale
12 May
Summary
- Hitachi plans to sell approximately 8% of its construction machinery subsidiary.
- The sale could fetch around ¥100 billion ($638 million) for the company.
- The transaction is expected to be conducted through block trades.
Hitachi Ltd., a prominent Japanese industrial electronics manufacturer, is reportedly planning to sell a substantial stake in its subsidiary, Hitachi Construction Machinery Co. Sources familiar with the matter indicate that the company aims to offload approximately 8% of its shares in the subsidiary.
This proposed divestment is anticipated to raise a considerable sum, estimated to be around ¥100 billion, which translates to approximately $638 million based on the current market valuation of Hitachi Construction Machinery. The transaction is expected to be carried out through block trades, a method involving the sale of a large quantity of shares.
The decision by Hitachi to reduce its holdings in its construction machinery arm signifies a potential strategic shift for the conglomerate. Further details regarding the timeline and specific buyers are yet to be disclosed.
