Japan's Hitachi Transport says to scrap tie-up with SG Holdings (updated)

SG Holdings

24/09/2020 12:34

(Recasts with announcement)
    TOKYO, Sept 24 (Reuters) - Japan's Hitachi Transport System
 9086.T  on Thursday said it and delivery firm SG Holdings
 9143.T  had decided to scrap a four-year-old capital tie-up,
citing the need for greater flexibility in the coronavirus era.
    The two companies are no longer considering a merger,
Hitachi Transport said, adding it would be returning its 20%
stake in SG Holdings for 87.5 billion yen ($830 million).
    Hitachi Transport said it expected to book a one-time gain
of 20.6 billion yen on its parent-only earnings in the year to
March related to the share sale. 
    It was still determining whether the share sale would have
an impact on its consolidated earnings, it said.   
($1 = 105.4900 yen)

 (Reporting by Hideyuki Sano and David Dolan; Editing by
Clarence Fernandez and Elaine Hardcastle)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4563 2768;))