A little-known Japanese maker of oven ranges and water heaters has offered to acquire Fujitsu General Ltd for as much as ¥257 billion (US$1.6 billion), becoming the latest suitor for Fujitsu Ltd's air-conditioner unit.

Paloma Rheem Holdings Co Ltd is offering to pay Fujitsu General stockholders ¥2,808 a share — a 24% premium to its Jan 6 close — or as much as ¥164.7 billion. Parent Fujitsu will separately sell its stake in the unit for roughly ¥92 billion, the Japanese company said in a statement. Paloma Rheem intends to finance the deal through bank borrowing and launch a tender offer around July, Fujitsu said.

Fujitsu General's shares were untraded and were bit to their upper daily limit in early Tokyo trading, while parent Fujitsu gained as much as 3.5%.

Japanese IT firm Fujitsu, which in its heyday made everything from laptops and chips to mobile phones and appliances, has hived off much of its consumer product lineup to focus on communications and information technology systems for businesses. The company had aimed for a quick sale of its stake in Fujitsu General as it shed non-core operations.