Hitachi Transport to issue preferred share to KKR, raise $975 million
January 25, 2023 at 02:36 am EST
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TOKYO (Reuters) - Japan's Hitachi Transport System Ltd said on Wednesday it would raise 127.2 billion yen ($975 million) by issuing a single preferred share to majority shareholder KKR & Co.
It will also issue a second class of preferred share for 10 billion yen to KKR as an indemnity claim.
Hitachi Transport is due to be delisted on Feb. 24 after the U.S. private equity firm's successful tender offer for it.
($1 = 130.4600 yen)
(Reporting by Tokyo Newsroom; Editing by Chang-Ran Kim)
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).