Calsonic jumped 29 percent to 1,330 yen at the close in Tokyo, the highest level since 1974, after the Nikkei newspaper reported KKR intends to buy the component maker through a tender offer for about 400 billion yen ($3.8 billion) from Nissan and other shareholders. Trading in Calsonic shares was suspended this morning.
Calsonic President Hiroshi Moriya said in April the company seeks to cut its dependence on Nissan and add more customers.
The Japanese automaker, which this month completed purchase of a stake in Mitsubishi Motors Corp., is spinning off non-core businesses to focus on developing cutting-edge technologies including electric powertrains and autonomous driving.
Calsonic is the largest parts maker affiliated to Nissan and posted profit of 22.5 billion yen on sales of 1.05 trillion yen in the 12 months ended March 31. Nissan owns 41.6 percent of Calsonic.
Representatives at Calsonic and Nissan said they are not the source of the Nikkei report and declined to comment. Nissan is “always considering various options that would lead to increasing their competitiveness,” Nicholas Maxfield, a spokesman for the automaker, said by e-mail.
An official agreement will probably be signed within the year, Nikkei reported.