Hitachi Transport System is a leader in the third party logistics (‘3PL’) industry in Japan and is growing to become one globally.
As part of the Offer, the Offeror has entered into an agreement with Hitachi pursuant to which, HTS will acquire Hitachi’s 39.91% interest. Subsequently, Hitachi will reinvest by acquiring 10% of the voting shares of HTSK which holds shares of the offeror (the ‘offer parent company’) and KKR will hold 90% of the voting shares of the parent company of the initiator.
The tender offer price of JPY 8,913 per share and the share repurchase price of JPY 6,632 per share were determined based on negotiations between KKR, HTS and Hitachi. This transaction will be financed primarily by KKR’s Asia IV fund.
The proposed tender offer price represents a 166.22% premium to the 12-month average closing price of Hitachi Transport System as of June 16, 2021; a premium of 161.53% over Hitachi Transport System’s 6-month average closing price as of June 16, 2021.
KKR expects to launch the tender offer by the end of September 2022.
“We look forward to using KKR’s global network and expertise to accelerate Hitachi Transport System’s next phase of growth and help the company achieve its goal of becoming Asia’s premier 3PL company,” said Hiro Hirano, co-co -Head of Asia-Pacific Private Equity at KKR and CEO of KKR Japan.
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