Private equity firm KKR, according to sources with knowledge of the transaction, is contemplating if it would enter into a partnership agreement with state supported Innovation Network Corporation of Japan. The partnership would purchase a majority stake in the healthcare unit of Panasonic.
According to the Bloomberg report, individuals with knowledge of the transaction have confirmed that Panasonic had granted KKR preferential negotiating rights to purchase the said majority share in the healthcare unit.
KKR and INCJ still have not conducted formal discussions and the buyout firm may even purchase the stake outright. The sources have confirmed that KKR is conducting due diligence over the business, which consists of the manufacture of blood glucose monitoring devices as well as electronic records keeping devices.
Another party bidding for the Panasonic healthcare unit is Toshiba with a consortium managed by Bain Capital. The healthcare unit is estimated to be up to USD1.5 billion.
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