Takata shares jump on stake sale report

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AFP

Shares in Japanese air bag maker Takata have jumped 20% following a report that a US private equity firm could take a majority stake in the company.

Kohlberg Kravis Roberts is looking to buy a 60% stake in Takata, Japan’s Nikkei newspaper reported.

A takeover could provide a lifeline to the firm which has been hit by a huge recall of faulty, potentially deadly, airbags used by carmakers worldwide.

The fault has been linked to the loss of 11 lives and more than 100 injuries.

While there has been no comment from either company so far, the report of KKR’s interest saw Takata’s shares jump by their daily limit.

Takata has paid out $70m (£48m) in fines from US regulators so far over the faulty airbags, and the company’s market value has dropped more than 80% since 2014.

Earlier this month, the company reported a net loss of 13.1bn yen for its financial year ending in March.

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Takata shares jump on stake sale report
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