FRANKFURT/TOKYO, April 11 Toshiba Corp
is considering a stock market listing and other options for
Swiss smart meter maker Landis+Gyr, it said on Tuesday, as the
Japanese conglomerate scrambles to raise funds to cover massive
losses at U.S. nuclear unit Westinghouse.
Reuters last month reported that Toshiba had hired UBS
to explore a sale or initial public offering of the
business, potentially valued at over $2 billion.
Toshiba will send out information packages on the company to
prospective buyers later this month, two people close to the
matter said, as it starts an auction expected to appeal mainly
to private equity companies.
Toshiba is targeting buyout groups such as Carlyle,
Cinven, Advent, Blackstone, Bain, Onex
, Triton, CD&R and even former owner KKR, the
Toshiba owns a 60 percent stake in Landis+Gyr which reported
an operating profit of 6.5 billion yen ($58.8 million) in the
nine months through December, down from 7.8 billion a year
Landis+Gyr has forecast a rise of nearly 5 percent in sales
to $1.64 billion for the year ending this month and has said it
was "unaffected by Toshiba's challenges".
Bidders may value Landis+Gyr at more than $2 billion or
10-11 times annual core earnings (EBITDA), people close to the
matter have said.
In an auction for Qundis, a smaller, German peer of
Landis+Gyr, buyout group HgCapital is seen attracting bids of
more than 400 million euros ($425 million), or up to 14 times
core earnings, from potential bidders such as Cinven, Bain and
Nordic Capital by an April 26 deadline.
Honeywell paid about 13 times expected core earnings
for German metering technology company Elster in 2015.
Toshiba has put its memory chip unit and other assets up for
sale and Westinghouse has filed for Chapter 11 protection from
On Tuesday it released its delayed financial results, but
without its auditor's endorsement, increasing the likelihood the
conglomerate will be delisted in Tokyo.
($1 = 0.9419 euros)
($1 = 110.5900 yen)
(Reporting by Arno Schuetze, Makiko Yamazaki and Taiga Uranaka;
editing by Jason Neely)