Matsushita Electric Industrial Co. said Friday it will raise its stake in Matsushita Electric Works Ltd. from 31.8 percent to 51 percent, thereby making the lighting and housing equipment maker a subsidiary.
Officials at the two companies said the move is designed to bolster their business ties, allowing them to take advantage of shared business resources.
Through a tender offer, Matsushita Electric Industrial will buy stocks of its affiliate at 1,040 yen per share, representing a 30 percent premium of the average closing price during the last one-month period, according to the companies.
Matsushita Electric Works was set up in 1935 through a Matsushita Electric Industrial spinoff.
MEW primarily makes and sells lighting, information and housing equipment.
For the fiscal year that ended in November, it expects to report 18 billion yen in net profit on revenue of 1.2 trillion yen.