Azbil has agreed to buy 2,387,000 shares of OTEC, the distributor that has sold and installed its products since 1961, from five investment partnerships whose general partners are Hikari Tsushin group companies. The off-market purchase equals 15.25% of OTEC's voting rights and would lift Azbil from 4.79% to 20.04%, or 3,137,000 shares.
Price and conditions
Azbil's notice puts the price at ¥3,000 a share, or ¥7.16bn in total. Both companies signed the capital and business alliance agreement on 26 October 2026, and Azbil signed the share transfer agreement with the five selling partnerships the same day. Settlement is planned for early November, three business days after the Japan Fair Trade Commission notifies Azbil it will not issue a cease-and-desist order. Azbil's notice adds that the statutory waiting period must also have run. The transfer is scheduled and conditional, not completed.
Who ends up where
Once the transfer closes, Azbil expects OTEC to become an equity-method affiliate. OTEC says Azbil would become a major shareholder and "other related company", and that its existing largest shareholder, which holds the position as of 31 March 2026, remains unchanged, on OTEC's own calculation of voting rights as of that date. OTEC adds that the post-transfer figures come from Azbil's notice and that it has not confirmed Azbil's beneficial holding.
What the alliance covers
The cooperation spans three areas: training and deploying construction staff, including certified construction managers and chief engineers; raising skills to handle large and complex projects; and jointly developing products and services. Azbil describes recruiting and training construction and engineering staff as an important constraint on building automation growth. Neither company gives hiring numbers or a development budget.
Azbil expects the alliance and the share purchase to have a minor effect on its consolidated results for the fiscal year ending March 2027. OTEC says it expects the deal to help its performance and corporate value over the medium to long term.