Japan's Hitachi nears deal to sell chemical unit to Showa Denko -Nikkei (updated)

NITTO DENKO

26/11/2019 24:52

(Adds company comments, shares, suitors, reorganisation
context)
    TOKYO, Nov 26 (Reuters) - Japanese conglomerate Hitachi Ltd
 6501.T  is nearing a deal to sell its 51% stake in Hitachi
Chemical Co Ltd  4217.T  to Showa Denko KK  4004.T  in a
transaction that could be worth about 950 billion yen ($8.7
billion), the Nikkei https://asia.nikkei.com/Business/Business-deals/Hitachi-nears-sale-of-core-chemical-unit-to-Showa-Denko
 reported on Monday.
    Following the sale, Showa Denko, a chemical engineering
group, buy the rest of Hitachi Chemical's outstanding shares
through a tender offer, the newspaper said.
    Showa Denko said in a statement it was considering various
options to boost its corporate value including the purchase of
shares in Hitachi Chemical but that nothing had been decided.
    Officials at Hitachi and Hitachi Chemical said the report
was not based on anything they had announced.
    Hitachi Chemical shares soared 16% in price in morning Tokyo
trade while those of Hitachi climbed more than 3%. Showa Denko
shares fell as much as 8.7%.
    Hitachi last month narrowed suitors for the chemical unit to
 a handful of bidders including Nitto Denko Corp  6988.T  and
U.S. buyout funds Bain Capital LP and Carlyle Group LP  CG.O .
 urn:newsml:reuters.com:*:nL3N26W1RH
    Hitachi has been among the most aggressive of Japan's
conglomerates in reorganising its business, selling non-core
assets while buying foreign businesses to expand overseas.
    Other divestiture includes chip-making equipment
manufacturer Hitachi Kokusai Electric and power tool unit
Hitachi Koki.
    Hitachi Chemical makes materials for semiconductors,
displays and lithium-ion batteries.
    ($1 = 108.64 yen)

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Bain and Carlyle among shortlisted bidders for Japan's Hitachi
Chemical -sources     urn:newsml:reuters.com:*:nL3N26W1RH
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 (Reporting by Arunima Kumar in Bengaluru and Junko Fujita in
Tokyo; Editing by Maju Samuel and Christopher Cushing)
 ((Arunima.Kumar@thomsonreuters.com; within U.S. +1 646 223 8780
(Extn 1760), outside U.S. +91 80 6749 1760;))