ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business

Hitachi, UK fund partner on $1.8bn bid for Toshiba's Swiss unit

Smart meter maker Landis+Gyr expected to attract other bidders

TOKYO -- Hitachi has made an acquisition proposal for Swiss smart meter maker Landis+Gyr, a Toshiba subsidiary, sources told The Nikkei. The offer, put forth with U.K. private equity firm CVC Capital Partners, is believed to be worth around 200 billion yen ($1.82 billion).

The Swiss company is likely to be a target for other suitors as well.

Toshiba, together with the Innovation Network Corporation of Japan, purchased Landis in 2011 for $2.3 billion. Toshiba and the public-private fund currently own 60% and 40% stakes, respectively.

Now, Toshiba is preparing to offload Landis+Gyr as it scurries to weather massive losses from U.S. nuclear arm Westinghouse Electric.

Hitachi and CVC formed a group for the bidding, with Hitachi holding a 10% to 20% stake and CVC controlling the majority. They have apparently proposed a plan in which the INCJ would retain a certain interest in the Swiss company.

Hitachi likely intends to capitalize on Landis' customer base in the U.S. through the acquisition.

Japan's Fuji Electric, which also produces smart meters, is thinking about purchasing Landis as well, as part of its overseas expansion. Smart meters help to optimize electricity use and are a key facet of smart grids.

Toshiba wants to sell Landis to help mitigate risks to its overall overseas businesses. It has also begun considering a write-down of Landis' book value.

A Toshiba official said earlier that the company is "considering various strategic options [about Landis], including an IPO."

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more