Private equity firms Bain Capital and KKR & Co. are among the suitors selected for the next round of bidding for Fujitsu Ltd.’s majority stake in its air-conditioner manufacturing unit, according to people familiar with the matter.
(Bloomberg) — Private equity firms Bain Capital and KKR & Co. are among the suitors selected for the next round of bidding for Fujitsu Ltd.’s majority stake in its air-conditioner manufacturing unit, according to people familiar with the matter.
Nibe Industrier AB, a Swedish maker of heat pumps and air conditioners, is advancing in the process for a 42% stake in Fujitsu General Ltd., the people said. The Stockholm-listed firm on Tuesday confirmed it’s considering a potential acquisition of all or a majority of the Japanese firm, adding that discussions are at early stage. Shares of Nibe tumbled by as much as 7.6%.
Fujitsu is seeking binding offers for the Tokyo-listed unit by the end of March, said the people, who asked not to be identified as the information is private. Shares of Fujitsu General have jumped more than 54% in the past 12 months, valuing the company at about ¥417 billion ($3 billion). Fujitsu’s 42% stake is worth about $1.3 billion.
Some of the prospective suitors that have dropped out could team up with remaining bidders, one of the people said. Deliberations are ongoing and the companies could decide against making offers, they said.
Fujitsu is considering various options to maximize the value of Fujitsu General and nothing has been decided at the moment, a representative for the company said in response to a Bloomberg News query. The firm declined to comment on potential bidders. Representatives for Bain and KKR declined to comment.
Fujitsu, which in its heyday made everything from laptops and supercomputers to chips, mobile phones and home appliances, has hived off much of its consumer product lineup to focus on communications and information technology systems for businesses. The company is aiming for a quick sale of its entire stake in the air-conditioning maker as it sheds non-core operations like its peers Hitachi Ltd. and Toshiba Corp.
–With assistance from Yuki Furukawa, Takako Taniguchi and Anton Wilen.
(Adds Nibe’s share price in second paragraph.)
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