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Business deals

Japan's electronics retailer Yamada to take over furniture seller

Crisis-torn Otsuka Kagu to cede majority stake to appliance store chain for $37m

Yamada's takeover could put to rest the boardroom and family feuds that have plagued Otsuka since 2015.

TOKYO (Reuters) -- Japanese electronics retailer Yamada Denki Co is set to pay over 4 billion yen ($36.8 million) to take over furniture seller Otsuka Kagu, which struggled to recover from a drawn-out boardroom and family feud, a report said on Thursday.

The two companies are in the final stages of striking a deal, and are set to make an announcement this week, Diamond Online reported.

Otsuka will issue new shares, and Yamada Denki will end up owning over 50% of the company's equity, the report said. While the move is set to dilute the value of existing shares, Otsuka's stock rose 0.6% to 163 yen.

Yamada Denki declined to comment. Otsuka would not confirm the report but said its board had made a decision on a capital tie-up earlier in the day and that an announcement would be made later.

Otsuka, already struggling against cheaper and more casual furniture stores such as Nitori Holdings and global chain IKEA, failed to recover from negative publicity on a battle between the company's founder and his now-CEO daughter.

The pair's power struggle led to a proxy battle in 2015, an emotional showdown that was played out on national television.

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