Investors rush to buyout embattled Takata image

The financial predicament of the Japanese supplier has drawn the attention of as many as 30 potential investors.

As Takata faces billions of dollars in costs over the massive recalls of its defective airbags, a restructuring plan is urgently needed in order to avoid bankruptcy. And since the Japanese supplier has not been able to find a suitable solution on its own, it hired the investment bank Lazard to come up with a rescue plan that is likely to also include trimming some of Takata’s global airbag operations. Since Lazard took control, many parties have shown their interest to offer financial support for the embattled company, with as many as 30 potential investors emerging, according to insiders. About half of those are from the auto industry, one of the sources said. Earlier reports suggested that there are also private equity firms attracted by a takeover, such as Kohlberg Kravis Roberts, Boston-based Bain Capital and Hong Kong-based PAG Asia Capital.

Other people with knowledge of the discussions said the committee overseeing a resolution to Takata’s financial and operational issues anticipated an agreement between the auto parts supplier, a financial sponsor and the automaker’s customers may be reached by November. Following this massive safety crisis, Takata’s global inflator market share will probably decrease even more in the coming years, with some analysts projecting it will shrink to around 5 percent by the end of the decade.

Via Reuters