KKR & Co raises takeover offer for Japan’s Hitachi Kokusai Electric

US private equity firm KKR & Co raised its takeover offer price for the third time for Japan's Hitachi Kokusai Electric Inc to 3,132 yen a share from 2,900 yen, according to a statement issued by Hitachi Kokusai.

Hitachi Kokusai said that it has decided to extend the offer period from 17 November to 8 December.

KKR had in April tabled a ¥2,503 per share offer for a total of ¥257 billion ($2.3 billion) and once again raised its offer in October to ¥2,900 per-share.

Hitachi Kokusai shares were trading yesterday at ¥3,335 , higher by ¥203 to KKR's latest revised offer.

KKR had in October sweetened its offer after US hedge fund Elliott Management Corp disclosed its stake in Hitachi Kokusai. Elliott later boosted its stake in Hitachi Kokusai from 5 per cent to 7.11 per cent and once again to 8.59 per cent.

Hitachi Kokusai Electric was formed in 2000 from the merger of three Hitachi Group companies engaged in businesses related to video, wireless communications, and semiconductor manufacturing equipment.

It expanded its business to semiconductor manufacturing equipment.

Post closing of the deal, KKR plans to keep full control of Hitachi Kokusai Electric's chip making equipment business after spinning it off, and will take a 60 per cent stake in the company's video solutions business.

Private equity firm Japan Industrial Partners and Hitachi will each own 20 per cent of the video solutions business.