✒ For Hitachi, this can be a big step in its transformation to become high-tech again. It can also clear its books of stakes in its listed subsidiaries, close the gap of conglomerate discount in valuation, provide liquidity to manage its total debt and leverage, and cover its recent $9.6 billion takeover of GlobalLogic — a US digital services company.
For the private equity firms, this can be a deployment of dry-powder that has been built up during the pandemic, and to invest in an industry that has potential: advanced metals, magnetic units and electronics — crucial elements for battery cases and magnetic materials used in electric cars.
If the deal came off, it would be Japan’s biggest-ever leveraged buyout and among the 20 top buyouts in history by transaction value.