Luxury toilet maker Lixil Group Corp said on Tuesday it would discuss the possible sale of its stake in Lixil Viva at a board meeting on the same day, in a deal the Nikkei business daily reported could reach around 100 billion yen ($923 million).
The Nikkei reported earlier that the Japanese group planned to offload its entire 53% interest in Lixil Viva, an operator of home improvement stores, to Arcland Sakamoto via a tender offer.
Lixil Group owns 23.4 million shares in the affiliate, according to Refinitiv Eikon, meaning it would gain about 60 billion yen if Lixil Viva is sold at a reported price of 2,600 yen per share.
Lixil is streamlining its operations after once-ousted Chief Executive Kinya Seto regained his seat a year ago following a shareholders’ revolt that became a high-profile victory for Japan’s corporate governance.
Last month, Lixil Group announced its plan to sell Italian maker of curtain walls Permasteelisa, which it bought for about 60 billion yen ($555 million) in 2011, to U.S. construction group Atlas Holdings for an undisclosed amount.
Lixil Group said in a statement that the reports by the Nikkei and others on Lixil Viva were not based on any announcement it had made. The company said it would make a prompt announcement if any developments warranted disclosure.
Arcland Sakamoto said in a separate statement it would discuss the reported tender offer at a board meeting on Tuesday.
Seto was re-elected as CEO following the company’s annual shareholders meeting in June last year, where most shareholders supported his return to the board.
Seto in 2018 abruptly resigned from the board, prompting a group of minority investors to question the move and led calls for resignation of then CEO and chairman.
Source: Reuters.com