Japanese builder Maeda is set to launch an unsolicited bid to acquire a controlling stake in affiliate and road paving firm Maeda Road Construction.

The deal is expected to be worth $780.75m (JPY86bn).

Maeda Road stated it would sever its capital relationship with group firm Maeda, which currently owns just over a 24% stake, and acquire all its shares in the latter.

Maeda will provide an offer of JPY3,950 per share, which is 50% more than the closing price of Maeda Road on Friday. This tender offer will be open until 4 March.

Maeda president Soji Maeda was quoted by Reuters as saying: “We will try to persuade Maeda Road management to agree with our plan. If the two companies unite, we can become a comprehensive infrastructure company that can handle everything from construction to operations.”

Maeda Road added that the bid was made without any formal communication.

Maeda Road president Ryozo Imaeda was quoted by Nikkei Asian Review as saying: “There aren’t any discernible synergies, and we want to ensure management independence.” Sorry, there are no polls available at the moment.

Maeda made the hostile bid to increase its shares in the road paving company from 24% to 51% and then transform the unit into a consolidated subsidiary.

Maeda currently operates a toll road business in Aichi Prefecture and expects to expand it. The firm aims to boost its road paving operations by converting Maeda Road into its subsidiary.

Soji said: “If the two companies unite, we can become a comprehensive infrastructure company that can handle everything from construction to operations.”

Established under a different name in 1930, Maeda Road was originally not associated with the Maeda construction company. In 1962, it became a Maeda Group business following a bailout and entered its present capital alliance with Maeda in 2001.

According to Maeda Road, its direct business with Maeda accounts for 1% of sales and therefore does not lead to synergies.