Hitachi Home hits a new high

Hitachi Home has a new 52-week high today at Rs.1169 with volumes surging 4 times, hitting the 20% upper limit.

The stock has hit a new high following the company’s announcement that its parent company, Hitachi Appliances will divest stake in the company and this is for getting into a global JV with with Johnson Controls. Through this JV, % stake in parent company, Hitachi Appliances. The deal price has been placed at US$2.5 billion. This will include global AC business, excluding sales and service operations in Japan.

The entire deal will get completed over the next couple of months and could most likely trigger off an open offer. In the Indian company, Hitachi Appliances holds 74% stake and post this deal, the control will go to Johnson.