Takata shares are up after KKR takeover interest went public image

Now that the private equity company Kohlberg Kravis Roberts (KKR) showed interested in taking over Takata and wanting to restructure it, the shares of the Japanese car parts company went up 24% this Thursday.

The global investment firm has expressed it is looking to save the troubled Takata, which is facing the biggest recall in history for its faulty air bag inflators, and save it from losses estimated at billions of dollars in costs.

Takata’s stock rose from $1.80 per share to $9.26 after Japan’s Nikkei reported that KKR is taking into account revamping Takata amid the claims against it for 13 deaths and over 100 injuries worldwide following exploding air bag inflators, helping it continue as a big car parts maker at a global level.

KKR did not comment on the report and Takata representatives could not be reached on the topic.

The information surfaced a day after Takata’s leading committee announced it would continue using the restructuring firm Lazard in order to find new investment in the company’s efforts to solve its inflator issues and the financial and operational problems encountered.

In order to stay in business, Takata has to find a solution as to face massive costs for its recalls and penalties. Hideaki Sudo, committee chairman at Takata, stated that “The committee strongly believes that it is in the best interests of all Takata stakeholders for Takata and its automotive customers to reach a consensual resolution that addresses the costs of the inflator issues while enabling Takata to remain a viable and valued global supplier to the automotive industry.”