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8586 - Hitachi Capital News Story

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Last Trade - 29/03/21

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £3.09bn
Position in Universe th / 3917

UPDATE 1-Hitachi plans to sell Hitachi Metals in a deal worth over $6 bln -sources

Tue 29th September, 2020 8:21am
(Adds background)
    By Junko Fujita and Kane Wu
    TOKYO/HONG KONG, Sept 29 (Reuters) - Hitachi Ltd  6501.T 
plans to launch a sale of its materials unit as early as next
month in a deal that could be worth more than 700 billion yen
($6.6 billion), three people with knowledge of the matter said. 
    Hitachi is planning to sell its 53% stake in Hitachi Metals
Ltd  5486.T , which makes components for cars and industrial
equipment, said the sources who declined to be named as they
were not authorised to speak to the media.
    Other minority shareholders in the Hitachi unit are expected
to sell their stakes to a winning bidder, the sources said,
adding that Hitachi Metals would eventually be delisted from the
Tokyo bourse.     
    Hitachi Metals had a market value of about 700 billion yen
($6.63 billion) based on Tuesday's close. A buyout would exceed
that amount given a premium would be expected.    
     Hitachi has retained Goldman Sachs Group  GS.N  to advise
on the sale while Hitachi Metals has hired Bank of America
 BAC.N , the people said. Spokespeople for the two banks
declined to comment. 
    Hitachi and Hitachi Metals declined to comment. The
conglomerate said in August it was considering various options
for the metals unit.*:nL1N2FM0A6
    Japanese conglomerates are driving the country's M&A rebound
as they reorganise. Deals taking businesses private have
amounted to $41.8 billion this year, up 34% year on year,
according to Dealogic. 
    On Tuesday state-backed Nippon Telegraph and Telephone Corp
(NTT)  9432.T  announced it planned to take its wireless carrier
business NTT Docomo Inc  9437.T  private in a deal worth 4.25
trillion yen.*:nL4N2GP38T
    The sale of Hitachi Metals is the latest of Hitachi's
divestiture of businesses. 
    Hitachi sold chemical unit Hitachi Chemical Co to Showa
Denko  4004.T  and a diagnostic imaging business to Fujifilm
Holdings Corp  4901.T  in December last year.*:nL4N28S1L4*:nL4N28S1F7
     Previously, Hitachi sold semiconductor equipment maker
Hitachi Kokusai Electric and power tool unit Hitachi Koki, both
to KKR. It also sold car navigation maker Clarion Co to France's
Faurecia SA.*:nL8N1X61H6
     ($1 = 105.6100 yen)

 (Reporting by Junko Fujita in Tokyo and Kane Wu in Hong Kong;
Editing by Simon Cameron-Moore and Jason Neely)
 ((813-4563-2711,, Reuters;))
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