Japan’s Hitachi to buy Clarion for $465 million
Japan’s Hitachi Ltd. (6501.T: Quote, NEWS, Research) said it would spend up to $465 million to acquire car electronics maker Clarion Co. Ltd. (6796.T: Quote, NEWS, Research), valuing the company at a 52 percent premium to its last closing price.
Hitachi, Japan’s largest electronics conglomerate and already Clarion’s top shareholder with a 14 percent stake, said it would launch a tender offer for the remaining shares from October 25 at 230 yen apiece, compared with Tuesday’s close of 151 yen.
Following the announcement, shares in Clarion were untraded due to a glut of buy orders at 201 yen, up 33 percent. Hitachi’s stock was up 0.7 percent at 702 yen. The benchmark Nikkei average <.N225> was up 0.37 percent.
Hitachi said it would aim to grab at least a 50 percent stake in Clarion, one of the world’s top makers of car navigation systems and car stereos, but it would buy the whole company if demand is strong.
Acquiring a 100 percent stake would cost Hitachi 55.67 billion yen ($465.2 million).
Hitachi aims to boost revenues in its automotive equipment business to 1 trillion yen by the business year to March 2011, up about 70 percent from 2005/06. Hitachi’s overall group sales come to about 9 trillion yen.
Source:
