SG Holdings is buying back the 20.0 per cent stake in Sagawa Express sold to Hitachi Transport in 2016 as part of a strategic capital and business alliance.
The real estate-to-delivery investment group will acquire 10.65 million shares for JPY 87.46 billion (USD 829.68 million) by 29th September.
At the same time, SG has returned a portion of its 32.35 million stocks, representing a 29.0 per cent stake, in Hitachi Transport as part of their plan to modify this 2016 strategic capital and business alliance.
Yesterday, the holding company said the effects from the cross-selling and resource sharing collaborations have been “beyond initial expectations”.
SG added: “However, amid an increasing uncertainty in the social economy due to spread of novel coronavirus infections, US-China trade friction and so forth, the environmental changes in our logistics industry have become substantial.
“We have decided to change the share ownership ratio considering the need to construct a capital relationship which further enables a swift management decision making.
“This is against the backdrop of increasing necessity to promptly work on businesses in order to nimbly react to the changing environment and accurately respond to customer needs going forward.”
However, the two intend to continue to collaborate and cooperate through sales activities, and the joint use of infrastructure by sharing locations/vehicles, among other things.
They formed their capital tie-up four years ago, when Hitachi sold 28.9 per cent of its global supply chain transportation subsidiary to SG for JPY 87.57 billion.
In turn, the holding group transferred a quarter of Sagawa to Hitachi Transport for JPY 66.32 billion.
The resulting alliance aimed to leverage their respective strengths in third-party logistics to provide comprehensive cover and maximise value.
Zephyr, the M&A database published by Bureau van Dijk, shows 3,420 deals targeting Japanese companies have been announced in 2020 to date.
The Sagawa share sale is ranked 24th so far this year.
© Zephus Ltd