KKR, Bain Capital and BPEA Vie for Hitachi Transport Stake at a $4.1bn valuation

Buyout firms including KKR, Bain Capital and Baring Private Equity Asia are among shortlisted bidders for Hitachi Ltd.’s minority stake in its transportation unit, according to people familiar with the matter.

Others that have made it to the next stage of bidding include Blackstone Inc., the people said, asking not to be identified discussing confidential information. The Japanese industrial conglomerate has been working with a financial adviser to field interest for its 40% stake in Hitachi Transport System Ltd., Bloomberg News has reported.

Shares of Hitachi Transport jumped as much as 5.8% in Tokyo on Wednesday, the biggest intraday gain in two months. They have rallied 69% in the past year, giving the company a market value of about $4.1bn.

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The next round of bidding is due in the coming weeks, the people said, adding a stake sale could also lead to a potential takeover offer for the whole business. Deliberations are still ongoing, no final decision has been made and there’s no certainty the process will result in a transaction, they said.

A Hitachi spokesman declined to comment on individual deals. Representatives for KKR, Bain Capital, BPEA and Blackstone declined to comment.

Hitachi’s $18bn Divestment Drive Kept Activists at Bay

Hitachi has been overhauling its portfolio of assets, which extends from kitchen appliances to power grids, as part of its efforts to focus on its higher-margin digitalization business. Last month, it announced plans to sell about half of its stake in its construction machinery unit to a group including Itochu for $1.6bn.

Founded in 1950, Hitachi Transport’s logistics services include heavy equipment and business relocation as well as air and ocean freight and cross-border transport, according to its website.

Source: BNN Bloomberg

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