Japanese housing company PanaHome jumped as much as 17.9 per cent on Monday after Panasonic Corp increased its offer to buy out the subsidiary.

Panasonic, which already owns 54.18 per cent of PanaHome, said it would offer to buy the remaining shares in a tender offer at ¥1,200 per share for a total of ¥92.4bn ($840m). The offer represents a 16.4 per cent premium on PanaHome’s closing price on Friday.

The companies agreed to cancel a previous share swap agreement made in December.

Panasonic’s December agreement to swap 0.8 shares of Panasonic for each share of PanaHome, or a value of ¥1,009 per PanaHome share was seen as too low by shareholders and sparking a proxy battle to test Japan’s corporate governance code.

PanaHome’s shares are up 17.7 per cent at ¥1,213 a share putting it among the best performing stocks on Tokyo’s Topix index. Panasonic rose 3.3 per cent to ¥1,307 a share. The benchmark index was up 1 per cent.

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