UPDATE 1-Grainger to buy majority stake in Japan's MonotaRO
* Grainger to increase stake to 53 pct from 38 pct
* To invest $4 million through a tender offer
June 19 (Reuters) - Industrial distributor W.W. Grainger Inc (GWW.N: Cotización) said it plans to increase its stake to 53 percent in Japan's MonotaRO Co Ltd (3064.T: Cotización) through an investment of $4 million.
Grainger, which currently has a 38 percent stake in the company, said it will initiate a tender offer bid process for 380,000 shares of MonotaRO in August.
MonotaRO, which had 2008 revenue of $136 million, was set up as a joint venture between Grainger and Sumitomo Corp (8053.T: Cotización) in 2000 to supply maintenance, repair and operating supplies in Japan.
Grainger will start the tender offer bid for 380,000 shares of MonotaRO at a price of JPY 1,010 per common share. It also has an agreement with Sumitomo which will commit another 380,000 shares.
Shares of Grainger were down 51 cents at $81.89 Friday on the New York Stock Exchange.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by Kavita Chandran) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))
© Thomson Reuters 2017 All rights reserved.