Hitachi Construction Machinery Co., Ltd. completed the acquisition of remaining 15% stake in Niigata Material Co., Ltd from Mitsubishi Steel Mfg. Co., Ltd..
January 31, 2015
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Hitachi Construction Machinery Co., Ltd. (TSE:6305) entered into an agreement to acquire remaining 15% stake in Niigata Material Co., Ltd from Mitsubishi Steel Mfg. Co., Ltd. (TSE:5632) for approximately ¥110 million in stock on October 27, 2015. Under the terms, for each share issued by Niigata-Material, 1.9 shares of Hitachi Construction Machinery will be issued. Hitachi Construction will issue a total of 0.06 million shares as consideration. Niigata Material Co., Ltd reported total assets of ¥2 billion, net assets of ¥664 million, sales of ¥2.89 billion, operating loss of ¥2 million and net income of ¥5 million for the year 2014. The transaction is subject to approval from the shareholders of Niigata Material Co., Ltd. The transaction was resolved by the Board of Directors of Hitachi Construction Machinery Co., Ltd. The transaction is expected to complete on January 1, 2016. Ernst & Young Transaction Advisory Services Co. Ltd. acted as a third-party appraiser for Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. (TSE:6305) completed the acquisition of remaining 15% stake in Niigata Material Co., Ltd from Mitsubishi Steel Mfg. Co., Ltd. (TSE:5632) on January 1, 2016.
Mitsubishi Steel Mfg. Co Ltd is a Japan-based company principally engaged in the manufacture and sale of speciality steel products, springs, fabricated materials and equipment. The Company operates through four segments. The Specialty Steel Products segment manufactures and sells speciality steel products such as carbon steel, low alloy steel, spring steel, and bearing steel. The Spring segment manufactures and sells coil springs, stabilizers, leaf springs, and coiled wave springs. The Fabricated Materials segment is engaged in the manufacture and sale of special alloy powders, fine powders, precision castings, and cast steel products. The Equipment and Device segment manufactures and sells forging machines, industrial machinery, steel structures, and environmental recycling equipment. The Company is also engaged in marine transportation, truck transportation, and warehousing businesses.
Hitachi Construction Machinery Co., Ltd. completed the acquisition of remaining 15% stake in Niigata Material Co., Ltd from Mitsubishi Steel Mfg. Co., Ltd..