Takata surges on KKR buyout reports

Shares in Japan’s Takata Corp surged on Thursday following a report that US private equity firm Kohlberg Kravis Roberts is looking to buy a 60% stake in the auto parts maker.

According to the Nikkei, KKR has submitted a restructuring plan to the external steering committee tasked with the restructuring.

In addition, Reuters cited people familiar with the matter as saying that KKR and other investors were in separate talks with a committee overseeing the restructuring about a financial investment to bail the company out.

Takata’s market capitalisation has taken a big hit in the last couple of years as it has been forced to pay out millions of dollars in fines from US regulators following the recall of faulty airbags that were linked to at least 13 deaths and over 100 injuries.

On Wednesday, Takata confirmed it has hired investment bank Lazard to help it with restructuring plans as it tries to deal with the losses stemming from the faulty air bags.

At 1005 BST, Takata shares were up 21% to JPY458.00.