Alps Alpine (TYO:6770) will dissolve its capital alliance with parts supplier Nippon Seiki (TYO:7287), while maintaining the existing business partnership, according to a Tuesday filing on the Tokyo Stock Exchange.
The Japanese electronics parts maker said it will sell 3 million Nippon Seiki shares on the market in stages. Nippon Seiki, in turn, holds 2.6 million Alps Alpine shares, representing 1% of issued stock, and has indicated it plans to sell them as well.
The move comes as companies in Japan increasingly reduce cross-shareholdings to strengthen corporate governance, Alps Alpine said, adding that both firms agreed the business alliance can continue without the capital link.
Alps Alpine and Nippon Seiki collaborate on integrated cockpit products for the auto sector. The capital alliance will end on Jan. 28.
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