HONG KONG (Reuters) -- Tan Chong International Ltd. said on Monday it plans to buy a 20.7 percent stake in a Japan-based logistics firm for HK$171.8 million or 2.48 billion yen ($22 million).
Tan Chong International - a motor vehicles' distributor in Singapore, Hong Kong, China and Thailand - said in a statement it agreed to buy Zero, which moves new, used and privately-owned vehicles throughout Japan for clients including Nissan Motors and Sumitomo Corp.
"The businesses of Zero are complementary to those of the group, particularly in the area of motor vehicle distribution," the firm said.
Tan Chong said it will fund the acquisition via internal resources.
Zero, formally known as Nissan Transportation Co., swung to a profit of 2.4 billion yen in 2003 versus a loss of 2.5 billion yen previously.
The sellers of Zero are TMCAP2000 Investment Ltd Partnership and AIG Japan Opportunity Fund L.P.