{"id":126904,"date":"2022-04-28T16:50:25","date_gmt":"2022-04-28T16:50:25","guid":{"rendered":"https:\/\/fin2me.com\/?p=126904"},"modified":"2022-04-28T16:50:25","modified_gmt":"2022-04-28T16:50:25","slug":"kkr-to-launch-tender-offer-for-hitachi-transport-in-5-2-billion-deal","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/kkr-to-launch-tender-offer-for-hitachi-transport-in-5-2-billion-deal\/","title":{"rendered":"KKR to launch tender offer for Hitachi Transport in $5.2 billion deal"},"content":{"rendered":"
TOKYO\/HONG KONG (Reuters) – KKR & Co Inc will launch a tender offer for Hitachi Ltd\u2019s logistics arm, the companies said on Thursday, a $5.2 billion deal that marks the private equity firm\u2019s latest acquisition from the Japanese conglomerate.<\/p> Private equity has been targeting Japan, the world\u2019s third-largest economy, where conglomerates have been hiving off non-core assets. Hitachi has been among the most aggressive, shedding lower-growth group companies over the last decade to focus on digital technology and services.<\/p>\n KKR will launch a tender offer for Hitachi Transport System Ltd, the companies said. Parent Hitachi will sell its almost 40% stake and then take 10% of the acquiring fund. The value of the deal is 670 billion yen ($5.2 billion), based on Reuters calculations.<\/p>\n In recent years Hitachi has sold both semiconductor equipment maker Hitachi Kokusai Electric and power tool unit Hitachi Koki to KKR. It has been held up by an investors as a rare example of how a traditional Japanese hardware firm has repositioned itself for the future and worked with private equity to deliver better returns for shareholders.<\/p>\n Hitachi Transport\u2019s third-largest shareholder, Hong Kong-based Oasis Management, will tender its shares in the offer, Oasis CEO Seth Fischer told Reuters.<\/p>\n \u201cHitachi has again proven itself to be an example of the best of governance in Japan,\u201d Fischer said. \u201cThey have run a truly robust process to find the best buyer for Hitachi Transport.\u201d<\/p>\n KKR will launch the tender offer at 8,913 yen a share, while Hitachi Transport will buy back its shares from Hitachi at 6,632 yen, the companies said.<\/p>\n Shares of Hitachi Transport closed at 8,540 yen on Thursday before the announcement, having surged since the Nikkei newspaper first reported the sale was in the works last week.<\/p>\n KKR last year raised $15 billion for its fourth Asia-Pacific focused fund, marking the region\u2019s biggest private equity fund at a time when buyout-backed deals are on the rise.<\/p>\n Last month, it announced the acquisition of Japanese real estate asset manager Mitsubishi Corp-UBS Realty Inc (MC-UBSR) for nearly $2 billion, further deepening its presence in the country.<\/p>\n It is also planning to spend $14.8 billion buying Ramsay Health Care, Australia\u2019s largest private hospital operator, and is carrying out due diligence on the listed company.<\/p>\n If successful, the bid will be the largest private equity buyout in Australian history and the largest deal down under this year.<\/p>\n KKR said that Hitachi Transport would aim to become a leading logistics player in Asia and eventually, globally, including through mergers and acquisitions.<\/p>\n Separately, Hitachi on Thursday reported a 49% jump in full-year operating profit and said it would buy back 200 billion yen worth of its own shares.<\/p>\n ($1 = 130.6500 yen)<\/p>\nBIG IN JAPAN<\/h2>\n