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Hitachi is a listed subsidiary,On the 20th it was revealed that he had entered a bidding procedure for the sale of Hitachi Metals and is seeking offers from four investment funds such as Bain Capital and Coleberg Clavis Roberts (KKR).
Higashihara, President of Hitachi (January 17, 2019)
Photographer: Kiyoshi Ota / Bloomberg
According to people familiar with the matter, HitachiWith Apollo Global ManagementThe Carlyle Group has also been asked to participate in the tender, and is seeking to express its offer before the deadline for the initial stage of the tender scheduled for next month. At the moment, it is only an investment fund and does not include operating companies.
Spokespersons for Bain, Carlyle, KKR and Apollo told Bloomberg they would refrain from commenting by email or phone.
The electronic version of the Nihon Keizai Shimbun previously reported on the initiation of the bidding procedure for Hitachi Metals by Hitachi.The share price rallied strongly in the 20th transaction. It was up 12% from the previous day to 1,561 yen, the first daytime increase in three months. Hitachi’s share price fell 1.3% from the previous day to 3,911 yen.
According to the Nikkei report, bidders are expected to be recruited and candidates narrowed by the end of this month, and then the second tender will begin.
A Hitachi spokesperson said the company did not announce it and commented that Hitachi Metals has been vetted in various ways but has not been decided at this time.
According to data from Bloomberg, Hitachi is the largest shareholder with a 52.75% stake in Hitachi Metals. Hitachi has been reorganizing its capital relationship with publicly traded subsidiaries with the aim of eliminating the “parent-child list,” which is said to have problems with corporate governance.
Takeshi Kitaura, an analyst at Bloomberg Intelligence, commented: “At first there was talk of selling, so there was no surprise.” While it is easy to generate synergistic effects when an operating company acquires it, it is difficult to generate it with the fund alone, and if the operator is interested in acquiring Hitachi Metals, “the purchase price may vary slightly,” he said.
In the Showa Denko Offer to Purchase (TOB) announced in December last year, Hitachi sold all of its shares. In January this year, it announced that it would implement a TOB at Hitachi High Technologies and make it a wholly-owned subsidiary for a total of 531.1 billion yen. Hitachi plans to sell half of its shares in Hitachi Construction Machinery.Nikkei reported in October.
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(Update the article by adding analyst comments)
