Yamada Denki to Acquire Majority Stake in Otsuka Kagu
Tokyo, Dec. 12 (Jiji Press)--Japanese electronics retailer Yamada Denki Co. <9831> plans to acquire a stake of over 50 pct in Otsuka Kagu Ltd. <8186>, a struggling furniture retailer, informed sources said Thursday.
Yamada Denki is expected to spend some 4 billion yen for the acquisition, the sources said.
The move comes after the two companies agreed to form a business tie-up in February. Under the partnership, Yamada Denki now sells furniture supplied by Otsuka Kagu.
Otsuka Kagu failed to raise enough capital through a third-party new share allotment in June, forcing it to scale down planned capital investment.
[Copyright The Jiji Press, Ltd.]