Fujitsu kicks off auction for air conditioning business – sources – Reuters

HONG KONG/TOKYO, Jan 19 (Reuters) – Fujitsu Ltd (6702.T) has launched an auction process for its listed air-conditioning manufacturing business Fujitsu General Ltd (6755.T) with initial bids due on Friday, people with knowledge of the matter said.
The sale is expected to attract interest from multiple private equity firms and strategic investors, said the people, who declined to identified as the talks are private.
Lazard Ltd (LAZ.N) is advising Fujitsu General and UBS Group AG (UBSG.S) is advising Fujitsu, two of the people said.
Fujitsu General, with 390 billion yen ($3 billion) market value as of Thursday, expects its operating profit to more than double to 18 billion yen in the year ending this March.
UBS declined to comment. Fujitsu General could not be reached for immediate comment out of office hours. Lazard did not immediately respond to a request for comment.
Fujitsu has said it plans to sell its 42% stake in Fujitsu General, as the Japanese electronics conglomerate accelerates a business overhaul. A Fujitsu spokesperson said the company cannot comment further.
The practice of listing subsidiaries has been under pressure from regulators in Japan, as critics say it is fundamentally unfair to minority shareholders, whose interests are inevitably subordinated to those of the parent.
The auction comes after Fujitsu had long sought potential buyers for Fujitsu General, including Germany's Bosch (ROBG.UL), two of the people said.
($1 = 128.4900 yen)
Our Standards: The Thomson Reuters Trust Principles.
LloydsPharmacy will close 237 counters in British supermarket group Sainsbury's stores over the course of this year, it said on Thursday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved