Bain-led consortium to acquire Hitachi Metals for $7.5b

REUTERS/Yuya Shino

A consortium led by global private equity firm Bain Capital will buy all the shares of Hitachi Metals Ltd for 817 billion yen ($7.5 billion), Hitachi Ltd’s metals subsidiary said on Wednesday.

For Hitachi, which currently owns 53% of Hitachi Metals, the deal is the latest divestiture in a decade-long business overhaul to pivot the business from electronics hardware to digital services.

The Bainled consortium, which includes two Japanese funds, will offer 2,181 yen per share to buy the 47% of Hitachi Metals not owned by Hitachi at a premium of 15.8% to Tuesday’s closing price. It will spend a further 382 billion yen acquiring Hitachi‘s 53% stake.

Hitachi Metals will be delisted from the Tokyo Stock Exchange.

Hitachi is expecting to book extraordinary profit of 328 billion yen in the current financial year, it said in a separate statement.

Hitachi has sought buyers since last year for the business which has posted net losses for two consecutive years in a deteriorating business environment.

In recent years it has also sold chemical unit Hitachi Chemical Co to Showa Denko and diagnostic imaging business to Fujifilm Holdings Corp.

Reuters

Singapore Reporter/s

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

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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.