Apollo, Carlyle, Bain among potential bidders for Japan’s Hitachi Metals

REUTERS/Yuya Shino

Apollo Global Management, Carlyle Group, KKR & Co, and Bain Capital are among potential bidders for Japan’s Hitachi Metals Ltd, people with knowledge of the matter said, a deal that could fetch more than $6.4 billion.

Reuters previously reported that parent company Hitachi Ltd has been planning to sell its 53% stake in the unit, which makes components for cars and industrial equipment, as it streamlines its operations.

Hitachi said on Friday “no formal decision has been made” with regards to the reported sale of Hitachi Metals, adding that the firm was considering “the enhancement of its corporate value”.

Initial bidding will be closed by the end of this month, said one of the sources, all of whom spoke on condition of anonymity as the bidding is not public.

Representatives for Carlyle, Bain Capital and KKR all declined to comment. Representatives for Apollo Global Management were not available for comment.

Hitachi Metals shares rose almost 10% on Friday, after the Nikkei business daily initially reported KKR and Bain Capital were among the bidders.

The deal would be the latest by private equity in Japan this year. This week KKR agreed to buy a majority stake in Japanese supermarket chain Seiyu with an e-commerce company Rakuten for over $1 billion.

Minority shareholders in the Hitachi unit are expected to sell their stakes to a winning bidder and the company would eventually be delisted, according to the previous Reuters report.

Hitachi Metals has a market value of about 660 billion yen ($6.4 billion) based on Friday’s close. A buyout would likely exceed that, given that a premium would be expected.

Reuters also previously reported Hitachi had retained Goldman Sachs Group to advise on the sale, while Hitachi Metals has hired Bank of America.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.