TOKYO (Reuters) - Japan's Hitachi Transport System 9086.T on Thursday said it and delivery firm SG Holdings 9143.T had decided to scrap a four-year-old capital tie-up, citing the need for greater flexibility in the coronavirus era.
The two companies are no longer considering a merger, Hitachi Transport said, adding it would be returning its 20% stake in SG Holdings for 87.5 billion yen ($830 million).
Hitachi Transport said it expected to book a one-time gain of 20.6 billion yen on its parent-only earnings in the year to March related to the share sale.
It was still determining whether the share sale would have an impact on its consolidated earnings, it said.
($1 = 105.4900 yen)
Reporting by Hideyuki Sano and David Dolan; Editing by Clarence Fernandez and Elaine Hardcastle
Our Standards: The Thomson Reuters Trust Principles.