The embattled Japanese auto supplier wants to find an investor as soon as possible to start its restructuring process.
There have been many investors showing their interest in Takata, since the supplier has announced it was looking for a banker to help the company overcome its troublesome financial situation triggered by the biggest recall ever in the automotive industry. Citing insiders familiar with the plans, Bloomberg reports Takata is engaging in talks with as many as 20 possible buyers to speed up the restructuring process, a plan that includes selling the firm to a private equity partner, a parts supplier or a combination of the two. Even if it hired the investment bank Lazard to come up with a rescue plan, a final buyout move is still tough to negotiate, considering the fact that there are many legal responsibilities to be taken into account with such a massive recall and numerous legal complaints.
Earlier reports suggested that half of those interested in a takeover are from the auto industry. However, insiders revealed Lazard did not intend to reach out to TRW and Autoliv because such a tie-up may be blocked by antitrust laws. It plans though to open talks with the private equity firm Blackstone, as well as with companies such as Lear, Continental and Denso. Other private equity firms attracted by a buyout include Kohlberg Kravis Roberts, Boston-based Bain Capital and Hong Kong-based PAG Asia Capital. Takata CEO Shigehisa Takada, the grandson of the company’s founder, recently said he would step down after the company found an investor.