There is a report that Japan's Hitachi is considering selling its storage business. Bloomberg, citing multiple sources, reported on Jan. 30 local time that the deal is estimated to be worth up to 200 billion yen.
Hitachi has not issued an official statement, but the sale is being reviewed as part of a companywide restructuring of assets.
Hitachi is reportedly planning to improve its business by shedding low-profit units. It has already appointed a financial adviser and is said to have distributed a summary of the business being sold to potential investors such as private equity funds.
The sale involves 2 subsidiaries in Japan and the United States. They include Hitachi Vantara, a wholly owned Hitachi unit. The 2 companies have combined annual revenue of about 300 billion yen.
On a conference call announcing earnings on Jan. 29, Hitachi Chief Financial Officer Tomomi Kato (가토 토모미) said, when asked about the strategy for the storage business, "Our capabilities alone are not sufficient" and "We will improve profitability through collaboration with external partners."
Chi-gyu Hwang
delight@d-today.co.kr