Hitachi, Ltd. (Toyko; www.hitachi.com) announced that it has executed a tender offer agreement with Showa Denko K.K. (SDK; Tokyo; www.sdk.co.jp) and HC Holdings K.K, a wholly- owned subsidiary of SDK, under which Hitachi agrees to tender all shares of common stock in Hitachi Chemical Company, Ltd. , held by Hitachi, in response to a tender offer to be carried out by the Offeror for the shares of common stock of Hitachi Chemical, a consolidated subsidiary of Hitachi. After the completion of the Tender Offer, Hitachi Chemical will no longer be a consolidated subsidiary of Hitachi.
Hitachi Chemical is currently engaged in the manufacturing, processing, and sale of functional materials, as well as advanced components and systems.
Showa Denko Group, which engages in the petrochemical, chemicals, electronics, inorganics, and aluminum businesses in Japan and overseas, pursuing business model innovation in order to become a “solution provider beyond the manufacturing industry.”
According to SDK, the tender offer represents a price of 4,630 yen per share, which corresponds to a purchase price of 964 billion yen ($8.8 billion). It is anticipated that the tender offeror aims to commence the tender offer by around February 2020.