Yamazaki Baking Co. will purchase a 35 percent stake in Fujiya Co. for about 16 billion yen, making it the scandal-tainted confectioner's biggest shareholder, the two companies said Monday.
The purchase will cement a long-term commitment between Yamazaki and Fujiya as they try to prevent Fujiya's woes from damaging the sweets industry. It will also allow Yamazaki to transfer some of Fujiya's cake-making expertise to its own operations.
According to the statement, Fujiya will issue about 68 million new shares to Yamazaki for 235 yen per share, a significant discount off Fujiya's closing price of 288 yen Monday.