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US buyout firm KKR & Co said it is buying auto parts maker Calsonic Kansei Corp from Nissan Motor and other shareholders for as much as 498.3 billion yen ($4.5 billion), seizing on a rare chance to do a multi-billion dollar deal in Japan.
KKR announced on Tuesday it will pay 1,860 yen per Calsonic share, or a 28.3 per cent premium over the stock's closing price on Tuesday, for the 41 per cent stake held by Nissan and for the rest of the shares from the market through a tender offer, taking the total size of the deal to 498.3 billion yen.
It beat out rival private equity firms Bain Capital and MBK Partners, which, according to Thomson Reuters LPC, had bid to buy Nissan's stake. Japan's second-biggest automaker opened the auction to sell the stake in June.
Calsonic provided private equity firms a rare opportunity to conduct a multi-billion dollar deal in a country where large companies are still reluctant to sell their units through drastic restructuring.
The deal comes as Nissan is looking for ways to use cash in other areas such as development of new technologies including next generation electric cars and automated driving functions. Nissan also bought a controlling stake in embattled Mitsubishi Motors Corp earlier this year.
Calsonic Kansei, which specialises in traditional auto parts, including interiors, electronics, air conditioning units and compressors, relies for about 80 per cent of its global sales on Nissan.
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