US private equity major Bain Capital proposes to acquire Japan Wind Development, the nation's third-largest wind power firm, through a tender offer in a deal worth up to 9.7bn yen (£54.2m, €74.8m, $80.9m).
The tender offer is expected to start on 24 March, the Nikkei newspaper reported.
Bain plans to offer 580 yen per share in Tokyo-traded Japan Wind Development.
Japan Wind's stock finished 17.28% higher at 543 yen on 23 March. The Tokyo Stock Exchange (TSE) temporarily halted trading in the stock following the report.
The offer price is 25% higher than Japan Wind's closing share price on 20 March.
Bain plans to purchase shares through a company jointly floated with Japan Wind President Masayuki Tsukawaki.
Bain Capital said in a statement: "Bain Capital will work together with the current management led by Mr Tsukawaki.
"We will support further development of wind power generation business through providing support for funding and strengthening management infrastructure for stable growth."
Japanese interest in renewable energy has risen since the 2011 earthquake and tsunami triggered nuclear accidents at the Fukushima Daiichi nuclear power plant.
Japan's nuclear reactors were gradually shut down over the course of a year as part of a safety drive after the March 2011 earthquake and tsunami wrecked the Fukushima power plant. Closures left the world's third largest economy with no nuclear-derived electricity for the first time since 1970.
Bain has invested in 10 Japanese firms after entering that market in 2006.
Japan Wind Development was set up in 1999.