From Bloomberg

Hitachi Ltd. agreed to buy the stake in Hitachi Power Africa Ltd. held by the investment arm of South Africa’s ruling party after criticism that the shareholding constituted a conflict of interest as the unit has won business from state companies.

Hitachi Power Europe Ltd. will buy the 25 percent stake from Chancellor House Holdings Ltd., the investment arm of the African National Congress, for an undisclosed amount, the South African unit of the Tokyo-based company said in a statement e-mailed to Bloomberg News yesterday. It will also buy the 5 percent held in the unit by Makotulo Investments & Services to become the sole shareholder.

“All parties have agreed strict confidentiality about the terms and conditions of the contract,” Hitachi Power Africa said in the statement.

Hitachi Power Africa won 38.5 billion rand ($3.6 billion) of contracts from state power utility Eskom Holdings SOC Ltd. to install boilers at the Medupi and Kusile power plant projects. In 2010 executives of Hitachi’s South African unit said the Chancellor House stake was a conflict of interest and ideally should be sold, following criticism from opposition parties and labor unions.

Written by Franz Wild/Read more at Bloomberg