Bic Camera raises stake in Best Denki

Bic Camera Inc will boost its equity stake in Best Denki Co to 15% from 10% to enhance their alliance, the two Japanese consumer electronics retailers said Friday. Best Denki, based in Fukuoka, will procure 3.06 billion yen by selling its own shares to Tokyo-based Bic Camera.

Best Denki will use the proceeds to improve its financial health by redeeming corporate bonds.

The two companies will also expand personnel exchanges and enhance joint store management. Bic Camera, already the top shareholder of Best Denki, will consider providing know-how about its point programs to its partner.

Bic Camera and Best Denki have jointly launched various measures since they formed business and capital alliances in September last year. Such measures include sharing their product repair centers and distribution networks, as well as joint product development.

Bic Camera has also launched an outlet at Best Denki's major store in Hiroshima to combine the two companies' expertise.

Separately, Best Denki announced a new overseas business plan. The firm will open five new directly operated outlets in Indonesia by the end of 2009 to add to its current two stores there.

© JCN