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Finance

NEC seen spending 50 billion yen to delist subsidiary

TOKYO -- Japan's NEC is expected to spend roughly 50 billion yen ($486 million) to make NEC Fielding a wholly owned subsidiary and delist it.

     As of late January, NEC owned a 37% stake in NEC Fielding. Another 30% is controlled by NEC's employee benefit trust.

     On Jan. 30, NEC announced a tender offer to purchase the remaining 33% at 1,580 yen per share by March 17, expecting to spend 28.3 billion yen.

     But certain agreements between NEC and the trust push up the cost of delisting. As NEC cannot include unlisted stock in the trust, the firm will swap in common shares it holds worth just over 20 billion yen.

     NEC Fielding is one of Japan's largest computer maintenance firms. With the move, NEC aims to eliminate overlapping costs, thereby boosting operating profit by 20 billion yen in three years.

(Nikkei)

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