Bain Capital, Carlyle Group among likely bidders on Takata (airbags) and then ... Possible bankruptcy
Takata Said to Push Ahead With Sale by Taking Bids This Week (1)
Yuki Hagiwara, Ma Jie and Masatsugu HorieSep 20, 2016 6:24 am ET
(Bloomberg) -- Takata Corp., the Japanese air-bag supplier that’s behind the automotive industry’s biggest safety recall, is moving forward with an auction of the company as private-equity firms and carparts makers line up offers.
Suitors include Carlyle Group LP, which is working with Chinese-owned air-bag manufacturer Key Safety Systems Inc.; Daicel Corp., a Japanese manufacturer of air-bag inflators that’s jointly bidding with Bain Capital; and KKR & Co., according to people familiar with the matter.
Bidders for Tokyo-based Takata have been asked to submit their proposals by early this week, and Takata aims to shortlist two to three candidates by October, said the people, who asked not to be identified because the information is confidential.
The sale will be closely scrutinized by the world’s largest automakers, which are likely to spend the next several years recalling air-bag inflators that can rupture and shoot deadly shards at vehicle occupants. Takata set up a committee in February that’s been negotiating with its car-making customers, led by Honda Motor Co., on the costs related to replacing the defective parts linked to as many as 15 deaths worldwide.
Restructuring Process
Some of the bidders are considering the possibility of some form of bankruptcy proceedings for Takata to mitigate the liabilities, said the people. A person with knowledge of the restructuring process said in May that Takata would seek to avoid bankruptcy and instead look for buyers that could take a controlling stake and carry the company through its crisis. Takata is working with Lazard Ltd.
Bloomberg WaPo
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