Hitachi’s spinoff lacks buyout chemistry
27/05/2019 02:34
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Alec Macfarlane
HONG KONG, May 27 (Reuters Breakingviews) - Bain and KKR are
eyeing the Japanese giant’s $6 bln chemicals arm. Steady cash
flow, modest debt - plus turnaround prospects - account for the
attraction. But it’s pricey relative to rivals, and a splashy
push into next-gen telecoms and electric cars could take years
to pay off.
Full view will be published shortly.
On Twitter https://twitter.com/AlecMac11
CONTEXT NEWS
- Private equity firms Bain Capital, Carlyle and KKR are
among potential bidders for Hitachi’s majority stake in its
Tokyo-listed chemical division, Reuters reported on May 17,
citing three people familiar with the situation.
- Hitachi has shortlisted a group of financial sponsors and
strategic suitors for the bidding process, after having initial
conversations with interested parties earlier this year, the
report added.
- Hitachi owns 51.2 percent of the division, which has a
market value of $5.7 billion.
- For previous columns by the author, Reuters customers can
click on MAC/
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Global private equity firms to bid for Hitachi's chemical unit:
sources urn:newsml:reuters.com:*:nL4N22T1KI
BREAKINGVIEWS - Private equity gives Evonik auto shock absorber
urn:newsml:reuters.com:*:nL5N20S1VP
BREAKINGVIEWS - Chinese mega-merger should catalyze chemical M&A
urn:newsml:reuters.com:*:nL4N1UR1P1
BREAKINGVIEWS - KKR’s Taipei deal hints at Asian daring
urn:newsml:reuters.com:*:nL4N1UJ09A
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(Editing by Clara Ferreira Marques and Katrina Hamlin)
((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))