Fabric manufacturer Miyuki Keori Co said Tuesday it would acquire a wholly-owned electronic equipment unit of its top shareholder, Toyobo Co on March 27.

By acquiring Bon Electric Co, at an estimated cost of slightly over 1bn yen ($8.7m), Miyuki Keori of Nagoya intends to bolster its electronics businesses to make up for a slump in its core fabrics business, company officials said.

The company already has an electronics subsidiary, Meitsu Electronics Industry Co, which focuses on telecommunications devices for Japan Railways Group companies.

Miyuki Keori expects that the acquisition of Bon Electric, which handles electronic parts for liquid crystal displays and cellular phones, will bring about positive effects especially in electronics research and development, the officials said. It aims for the two units to generate 5bn yen ($43.6m) in combined sales in fiscal 2003 ending in March 2004, the officials said.