Mori Seiki, Gildemeister To Expand Cross-Shareholdings

TOKYO (Nikkei)--Mori Seiki Co. (6141) said Thursday that in August or September it will expand its cross-shareholdings with Gildemeister AG, Europe's largest machine tool maker.

The Japanese firm plans to raise its stake in the German firm by 4.2 percentage points to 24.9%. Gildemeister will increase its stake in the Japanese machine tool maker by 5 points to 10.1%.

Mori Seiki will offer shares of its subsidiaries in a capital contribution in kind to Gildemeister, which will issue new shares to the Japanese firm through a third party allocation. Gildemeister, meanwhile, will execute the right to raise its stake in Mori Seiki.

The companies, which formed a capital and business alliance in 2009, are trying to strengthen their ties, based on the assumption that the antimonopoly regulators in Germany and Japan will approval the deal.

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