Global investment firm KKR is to make a tender offer for the common shares of Hitachi Transport System Ltd (HTS) through HTSK Co, Ltd, an entity owned by the investment funds managed by KKR.
Hitachi Transport System is a specialist in the third-party logistics business (3PL) in Japan. The Company provides supply chain solutions for customers who outsource logistics functions such as logistics system integration, inventory and order control, logistics centre operations, factory logistics, and transportation and delivery services.
HTSK Co has entered into an agreement with Hitachi to acquire Hitachi’s 39.91% holding in a share buyback. Hitachi will then reinvest by acquiring 10% of shares with voting rights in HTSK Holdings Co.
The proposed tender offer price of JPY8,913 per share and the share buyback price of JPY6,632 per share have been determined based on the negotiations among KKR, HTS, and Hitachi. This transaction will be financed predominantly from KKR’s Asia IV Fund and is designed with a low-leverage capital structure for HTS’s sustainable growth.