Takata committee in rescue talks with KKR, other investors-sources

Record ID: 101896

  • Title: Takata committee in rescue talks with KKR, other investors-sources
  • Date: 26th May 2016
  • Summary: TOKYO, JAPAN (FILE - MAY 11, 2016) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** TAKATA CHIEF FINANCIAL OFFICER, YOICHIRO NOMURA, ARRIVING WITH ASSISTANTS AT NEWS CONFERENCE NOMURA BOWS VARIOUS OF NEWS CONFERENCE IN PROGRESS
  • Embargoed: 10th June 2016 12:35
  • Keywords: Takata KKR Japan restructuring talks investor
  • Location: LONDON, ENGLAND, UK/ TOKYO, JAPAN/ AUBURN HILLS, MICHIGAN AND NEW YORK, NEW YORK, UNITED STATES
  • City: LONDON, ENGLAND, UK/ TOKYO, JAPAN/ AUBURN HILLS, MICHIGAN AND NEW YORK, NEW YORK, UNITED STATES
  • Country: Japan
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0054JG2NPP
  • Aspect Ratio: 16:9
  • Story Text: KKR & Co and other investors are in separate talks with a committee overseeing a restructuring of Japan's Takata Corp about a financial investment to bail out the embattled auto parts maker, people familiar with the matter said on Thursday (May 26).
    Japan's Nikkei newspaper reported earlier on Thursday that KKR has proposed taking about a 60 percent stake in Takata and has submitted a restructuring plan to the external steering committee tasked with the restructuring.
    "Takata as a company is, without help, in dire trouble. What I think has surprised me is two things, is that KKR, the American private equity company is supposedly prepared to take a 60 percent stake in Takata and they are going to need an awful lot of help from all the vehicles as well to pull this business round. But I suppose the only thing I can suppose is that the best time to buy something is when it is in rags," David Buik, Market Commentator at Panmure Gordon said.
    Takata and KKR spokeswomen declined to comment on the report, which drove up shares in the company by its daily limit to trade 21 percent higher.
    The U.S. fund approached the committee, once source told Reuters.
    Takata's external committee said on Wednesday (May 25) it had hired investment bank Lazard Ltd to lead restructuring efforts as the auto parts supplier potentially faces billions of dollars in costs stemming from a global recall of its inflators.
    The Nikkei said the selection of a financial sponsor would require discussion with Takata's automaker clients and stakeholders.
    The company's founding family owns nearly 60 percent of the firm, which was started by Takezo Takada in 1933 as a maker of parachutes and other textiles, and is now run by his grandson.
    Reuters in April reported that Takata planned to draw up a shortlist of financial backers by August, and that it hoped to reach an agreement on its restructuring by mid-September.
    Earlier this month, the U.S. Transportation Department and Takata confirmed that 17 automakers would recall another 35 million to 40 million air bag inflators by 2019 - on top of 28.8 million recalled previously. Globally, more than 50 million inflators have been recalled so far.
    On May 11 Takata's Chief Financial Officer Yoichiro Nomura apologised to affected drivers at a news conference and announced they were seeking a replacement inflator product.
    KKR currently invests in Japanese companies, including in Panasonic Healthcare and Pioneer DJ Corporation.
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