Otec announced a capital and business alliance agreement with Azbil. Azbil will acquire shares through an off-auction transaction, and its stake is expected to rise above 20%.
Otec announced on the 26th that it had entered into a capital and business alliance agreement with Azbil. Under the agreement, Azbil will acquire 2,387,000 Otec shares from an investment limited partnership affiliated with Hikari Tsushin through an off-auction negotiated transaction.
After the acquisition, Azbil's holdings will total 3,137,000 shares, including its existing 750,000 shares, and its stake is expected to reach 20.04%. Azbil is expected to become a major shareholder and an affiliate. The share transfer is scheduled for early November.
The companies have maintained a business relationship for more than 60 years since entering into an authorised dealership agreement in 1961. Through the alliance, they will pursue initiatives including talent development and utilisation, strengthening their ability to handle large-scale projects, and joint development of new products and services.