U.S. investment fund Ripplewood Holdings LLC will obtain a 51 percent stake in auto parts maker Asahi Tec Corp.

The takeover was approved Tuesday by board meetings of Asahi Tec and its parent company, NGK Insulators Ltd., executives from the two companies said.

Asahi Tec is currently NGK's largest shareholder, but it will sell its 42.36 percent stake to Ripplewood, the company said.

Peter Berger, managing director and chief financial officer of Ripplewood, said the deal will help Asahi Tec, based in Shizuoka Prefecture, further penetrate the global market as the firm has high quality technology and a stable customer base.

Under the agreement, two Ripplewood-related companies will launch a tender offer to acquire up to 30.51 million shares worth about 4.4 billion yen -- or 51 percent of Asahi Tec's outstanding shares -- between Wednesday and May 27.

To further strengthen Asahi Tec's financial base, Ripplewood will also purchase 2 billion yen worth of new preferred shares through a third-party allocation in July, following approval at a general shareholders' meeting slated for late June, the company said.

Asahi Tec is facing difficulties in procuring financial and human resources to expand its business, President Sadatsugu Takeuchi said.

Ripplewood has purchased a number Japanese firms in recent years, including the former Long-Term Credit Bank of Japan, now called Shinsei Bank, the failed Seagaia resort complex, and Nippon Columbia Co.