Best Denki Surges on Report of Yamada Stake Hike: Tokyo Mover
Best Denki Co. (8175) surged the most in nine years in Tokyo trading after the Nikkei reported that Yamada Denki Co. (9831) will spend more than 10 billion yen ($126 million) to boost its stake in the rival electronics retailer.
Best Denki rose as much as 19 percent to 183 yen, the biggest gain since April 2003. Yamada Denki gained as much as 2.7 percent to 3,665 yen.
Yamada will raise its stake in the smaller retailer to more than 50 percent from the current 7.5 percent, the Nikkei reported. Best in April reported a 44 percent drop in profit for the year ended Feb. 29 amid a decline in television sales.
The company will use the funds from Yamada to shut stores and will remain a publicly traded company, according to the report. Both companies, in statements to the Tokyo Stock Exchange, said they have nothing to disclose at this point.
To contact the reporter on this story: Yuki Yamaguchi in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Anjali Cordeiro at email@example.com