KKR to buy most of Hitachi Transportation Unit, Nikkei says

KKR & Co plans to acquire about 90 per cent of Hitachi Ltd’s transportation unit for more than 600 billion yen (S$6.4 billion), including much of Hitachi’s 40 per cent stake, Nikkei reported on Thursday (Apr 21) without citing where it got the information.

The private equity firm has been named the preferred bidder to buy Hitachi’s stake, according to the report. Hitachi will reduce its stake in the unit, Hitachi Transport System., to 10 per cent, Nikkei reported. KKR will launch a tender offer once the agreement is reached with Hitachi, and plans to take the unit private, Nikkei said.

The companies plan to reach an agreement by Apr 28, when the preferential bidding rights will expire, according to the report.

The report comes amid Hitachi’s moves to review its portfolio assets. Bloomberg previously reported that buyout firms including KKR, Bain Capital and Baring Private Equity Asia were among the shortlisted bidders for Hitachi Transport.