Hitachi is gradually selling off its stake in the company to reaffirm the independence of Maxell's management. It will keep the remaining shares for now. Maxell changed its name from Hitachi Maxell on Oct. 1.
Hitachi will sell 5,386,200 shares to SMBC Nikko Securities with an overallotment option of up to 807,900 shares for a total of 6,194,100 shares. SMBC Nikko is expected to resell a portion of the stock to foreign investors.
Concurrently, Maxell will buy back 620,000 shares -- just over 1% of issued stock -- to mitigate the sale's impact on its share price. Although Hitachi and Maxell are scaling down capital ties, the two plan to continue cooperating on research and development of storage cell batteries, automobiles and other growth fields.