JCHAC to acquire 72% of Hitachi Home and Life Solution

A promoter group firm of Hitachi Home and Life Solution (India) will acquire 72.41 per cent stake in the company for over Rs 1,616 crore to facilitate Hitachi Appliances' deal with Johnson Controls. JCHAC India Holdco, a wholly-owned subsidiary of Japanese giant Hitachi Appliances, would acquire the said stake. "The shares are proposed to be transferred at the value of Rs 821 per share and settled in JPY (Japanese Yen) at an exchange rate applicable on the date of agreement for the proposed transfer," Hitachi Home said in a filing to BSE. JCHAC India would acquire 19,689,894 shares of Hitachi Home on September 10. Based on the price of Rs 821 apiece, the stake would be worth Rs 1,616.54 crore. "The transfer is proposed to be made as a step to facilitate the global acquisition of air conditioning business of Hitachi Appliances by Johnson Controls," the filing said. On January 21, 2015, US-based Johnson Control and Hitachi and had entered into an agreement to form a 60:40 joint venture for the global air conditioning business of Hitachi Appliances. JCHAC India Holdco was incorporated on April 30, 2015, as an indirect wholly-owned subsidiary of Hitachi Appliances.