U.S. buyout firm KKR has put on hold a planned acquisition of Hitachi Ltd’s chip making equipment and video solution business, the companies said, citing issues over the terms of the deal.
KKR in April agreed to buy Hitachi Kokusai Electric in a deal valuing the company at about $2.3 billion and was due to buy up to 48.33 percent of the company at 2,503 yen per share through a tender offer as a first step in the process. The tender offer was due to start as early as Thursday.
But a third-party committee reported to board of directors at Hitachi Kokusai Electric that it no longer supported the terms of the planned transaction which could be disadvantageous to minority shareholders of Hitachi Kokusai.
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