It seems that Takata’s financial predicament is drawing more and more attention from a lot of prospective investors.
The airbag crisis has pushed Takata on the verge of bankruptcy, as it has lost around two thirds of its market value within one year only. The supplier’s precarious financial status is now seen as a great investment opportunity for many companies which have already engaged in talks with Takata over a possible takeover. It was reported two weeks ago that the private equity company Kohlberg Kravis Roberts intends to take around 60 percent stake in Takata, for now to learn from Reuters that a major Chinese auto supplier, Ningbo Joyson Electronic, is also looking for a bailout move. Furthermore, Bloomberg also reported that Boston-based Bain Capital and Hong Kong-based PAG Asia Capital were also interested in an investment.
Ningbo Joyson aims to boost its global operations and it recently bought the Michigan-based Key Safety Systems airbag maker. Now, both these companies are considering a further expansion plan, a strategy that is overviewed by Lazard Ltd, the same investment bank hired by Takata to conduct its restructuring program. “We don’t say it’s possible, also we don’t say it’s impossible, depends on the situation with Takata,” a spokesman for Ningbo Joyson said, adding that the company has not had any contact yet with the Japanese supplier.
After the recent massive safety campaigns expansions in the United States and Japan, the number of recalled faulty airbags made by Takata may overpass 100 million worldwide. The deadly issue has been linked so far to at least 13 deaths and over 100 injuries globally.