UPDATE: Nissan Sells Calsonic Kansei Stake to KKR

Nissan Motor Co. is selling its 41% stake in its Calsonic Kansei Corp. (CK) subsidiary for 207 billion yen ($1.8 billion) as part of a tender offer by U.S. buyout firm KKR & Co. to acquire the supplier outright.

KKR is offering 1,860 yen ($16.78) per share, a 28% premium. The firm will launch a separate tender offer in February to buy the remaining shares in CK. The overall deal involves nearly 268 million shares and a value of about 498 billion yen ($4.5 billion), according to KKR.

CK supplies interior systems, air conditioning systems, compressors, radiators and exhaust systems. The company generates about 85% of its sales, which totaled more than 1 trillion yen ($9 billion) in the last fiscal year, from Nissan.

CK says it will use its share of the proceeds to bolster research on advanced safety and environmental technologies and to acquire companies that help it broaden its product line and pursue other customers.