KKR Offers To Takeover Hitachi Transport

KKR & Co Inc KKR disclosed a tender offer to take Hitachi Transport System, Ltd HTSLF private in a deal valued at JPY 670 billion ($5.2 billion).
In connection with the tender offer, Hitachi Transport offered to pay JPY 6,632 a share to buy back the 40% stake held by Hitachi, Ltd. in Hitachi Transport.
KKR offered JPY 8,913 for each share of Hitachi Transport, implying a 166% premium to its 12-month average closing price through April 27.
Hitachi looks to re-invest and own around 10% of Hitachi Transport after KKR's acquisition and the unit's delisting.
KKR aims to make Hitachi Transport the leading third-party logistics company in Asia.
Hitachi has been divesting assets to focus on its core businesses of power grids, nuclear energy, automotive parts, train infrastructure, and industrial products, linking many of them with its software, Bloomberg reports.
Hitachi Construction Machinery Co, Ltd HTCMY, Hitachi Metals Ltd HMTLY, and Hitachi Kokusai Electric Inc weighed a sale.
Price Action: KKR shares closed higher by 1.57% at $51.68 on Wednesday.