Economy

Markets

Industries

Insights

Reports

Events

Digital China eyes stake in Japan's SJI

(Agencies)
Updated: 2009-11-02 17:34

Digital China Holdings and its affiliates are in talks to invest about 5 billion yen ($56 million) in Japanese systems developer SJI Inc, the Nikkei newspaper reported.

Digital China Holdings is an information technology distributor spun off from PC giant Lenovo Group in 2000. Its parent firm is Chinese conglomerate Legend Holdings, the Nikkei said.

Related readings:  Digital China Holdings holds IT conference in Beijing  Legend Holdings plans HK, US listing  Legend Holdings unit takes in Warburg Pincus as equity investor  Legend Holdings to list real estate unit in HK

SJI spokesman Hideaki Kinuta declined to comment on the report.

Digital China Holdings and its affiliates are considering buying shares in a private placement or stock warrants, and could ultimately become SJI's top shareholder with a roughly 40 percent stake, the Nikkei said.

Through the capital tie-up, Digital China Holdings aims to gain access to advanced systems technology from Japan to help it obtain orders from Chinese financial institutions, communications firms and government entities, the Nikkei said.

SJI, which has a market value of about $150 million, aims to boost its earnings by expanding its sales network in China, where demand for systems development is growing strongly along with the economy, the Nikkei said.