KKR Completes Tender Offer for Hitachi Kokusai

09-Dec-2017 Intellasia | BusinessWire | 7:17 PM Print This Post

TOKYO–(BUSINESS WIRE)–Global investment firm KKR
and Hitachi Kokusai Electric Inc. (“Hitachi Kokusai” or the “Company”;
TSE stock code 6756) today announced the completion of a tender offer by
HKE Holdings G.K. (the “Offeror”), an entity owned by KKR investment
funds, for the common shares of Hitachi Kokusai (excluding the 51.67% of
its shares that are owned by Hitachi, Ltd. (“Hitachi”). Approximately
25.55% of the common shares have been tendered through the tender offer
and will be acquired by the Offeror.

In connection with the tender offer, the Offeror has entered into an
agreement (the “Agreement”) with Hitachi, the lead shareholder in
Hitachi Kokusai, and HVJ Holdings Co., Ltd., (“HVJ”), an entity backed
by funds managed/ serviced by Japan Industrial Partners, Inc. (“JIP”).
Under the terms of the Agreement, following a share consolidation after
the tender offer, Hitachi Kokusai will acquire Hitachi’s 51.67% holding
of Hitachi Kokusai’s common shares in a share repurchase. Thereafter,
Hitachi Kokusai will conduct an absorption-type company split pursuant
to which the Offeror will succeed to 100% of the Company’s Thin-Film
Process Solutions business. Subsequently, the Offeror will transfer 20%
of the shares of Hitachi Kokusai to each of Hitachi and HVJ, resulting
in 60%, 20%, and 20% ownership of Hitachi Kokusai’s Video and
Communication Solutions business for the Offeror, Hitachi and HVJ,
respectively.

Hitachi Kokusai operates two business segments: A Video and
Communication Solutions business engaged in video security, IoT
high-reliability wireless, and railroad solutions, and a Thin-Film
Process Solutions business focusing on semiconductor manufacturing
equipment as well as systems maintenance and sales of parts and used
equipment.

Mr. Hiro Hirano, Member of KKR and CEO of KKR Japan, said, “We are
pleased with this result and are excited to begin our partnership with
Hitachi and JIP to strengthen Hitachi Kokusai’s business. We are
confident that by leveraging KKR’s global network, experience and
resources, we will help Hitachi Kokusai achieve its growth goals and
strengthen its position as a worldwide industry leader.”

KKR makes its investment predominantly from its Asian III Fund.

About KKR

KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate, credit and, through its strategic manager
partnerships, hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach,
employing world-class people, and driving growth and value creation with
KKR portfolio companies. KKR invests its own capital alongside its
partners’ capital and provides financing solutions and investment
opportunities through its capital markets business. References to KKR’s
investments may include the activities of its sponsored funds. For
additional information about KKR & Co. L.P. (NYSE: KKR), please visit
KKR’s website at www.kkr.com and
on Twitter @KKR_Co.

Contacts

KKR Asia Pacific
Anita Davis, +852 3602-7335
[email protected]
or
KKR
New York
Kristi Huller, +1 212-230-9722
[email protected]
or
For
KKR Japan
Ashton Consulting
John Sunley, +81-3-5425-7220 /
(0)90 7416-0180
[email protected]
or
Brendan
Jennings, +81-3-5425-7220/ (0)70 1065 4464
[email protected]

 


Category: BusinessWire, PRAsia

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