Japan's Lixil Group to discuss stake sale in home improvement unit at board meeting (updated)
09/06/2020 03:07
(Adds background of Lixil CEO)
(.)
TOKYO, June 9 (Reuters) - Luxury toilet maker Lixil Group
Corp 5938.T said on Tuesday it would discuss the possible sale
of its stake in Lixil Viva 3564.T 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 9842.T 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. urn:newsml:reuters.com:*:nL4N23W1S9
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. urn:newsml:reuters.com:*:nL3N22429N
($1 = 108.0300 yen)
(Reporting by Chris Gallagher and Junko Fujita; Editing by
Muralikumar Anantharaman and Rashmi Aich)
((chris.gallagher@thomsonreuters.com; 81-3-4563-2714;))