A consortium led by global private equity firm Bain Capital will buy all the shares of Hitachi Metals Ltd for 817 billion yen ($7.5 billion), Hitachi Ltd’s metals subsidiary said on Wednesday.
For Hitachi, which currently owns 53% of Hitachi Metals, the deal is the latest divestiture in a decade-long business overhaul to pivot the business from electronics hardware to digital services.
The Bain–led consortium, which includes two Japanese funds, will offer 2,181 yen per share to buy the 47% of Hitachi Metals not owned by Hitachi at a premium of 15.8% to Tuesday’s closing price. It will spend a further 382 billion yen acquiring Hitachi‘s 53% stake.
Hitachi Metals will be delisted from the Tokyo Stock Exchange.
Hitachi is expecting to book extraordinary profit of 328 billion yen in the current financial year, it said in a separate statement.
Hitachi has sought buyers since last year for the business which has posted net losses for two consecutive years in a deteriorating business environment.
In recent years it has also sold chemical unit Hitachi Chemical Co to Showa Denko and diagnostic imaging business to Fujifilm Holdings Corp.