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TOKYO (Jiji Press) — Hitachi Ltd. is in talks with U.S. private-equity firm KKR & Co. to sell subsidiary
Hitachi Transport System Ltd., sources familiar with the matter said Thursday.
The electronics maker, which currently owns 39.9% of the unit, plans to lower the stake to around 10%. KKR is expected to take Hitachi Transport private through a tender offer so that it can work to boost the logistics firm’s value.
Hitachi Transport formed a capital and business tie-up with SG Holdings Co., the parent of Sagawa Express Co., in 2016 with the aim of an eventual merger. But the merger was called off in 2020 following significant changes in the business environment due to the COVID-19 pandemic.
Hitachi Transport shares closed at ¥6,760 on the Tokyo Stock Exchange Thursday, putting its market capitalization at around ¥568.5 billion. SG has a 9.8% stake in Hitachi Transport.
Hitachi has been reorganizing the group since it plunged into financial difficulty due to the global financial crisis of 2008. It announced in January that it will sell some of its stake in Hitachi Construction Machinery Co. to a group of companies including trading house Itochu Corp.
It has also decided to sell off Hitachi Metals Ltd. It is in the final stretch of efforts to reorganize its listed subsidiaries.
