KKR, Bain, Fujifilm to bid for Japan’s Toshiba Medical: Reuters

(Reuters) — U.S. buyout funds KKR & Co (KKR.N) and Bain Capital, as well as Fujifilm Holdings Corp (4901.T), are among potential bidders for a medical equipment unit of financially troubled Toshiba Corp (6502.T) in a deal that could fetch more than $3 billion, people familiar with the process said on Wednesday.

Toshiba, embroiled in Japan’s worst accounting scandal in years, is seeking to sell a controlling stake in Toshiba Medical Systems Corp, a unit that bidders think could be valued as high as 400 billion yen ($3.4 billion), said the sources, one of whom is involved in the discussions and two who have been briefed on them.

The first round of bidding will close on Friday, they said. A second round would determine such issues as the size of the stake, they said.

Toshiba Medical recorded 22.9 billion yen in net profit for the year to March on sales of 287 billion yen.

Canon Inc (7751.T) Chief Financial Officer Toshizo Tanaka said on Wednesday the company is interested in buying Toshiba Medical Systems.

Konica Minolta Inc (4902.T) has teamed up with Permira [PERM.UL] to place their bid, while Sony Corp (6758.T) and Carlyle Group Inc (CG.O) are also biding, the sources said, asking not to be identified because the process is private.

KKR has teamed up with Mitsui & Co (8031.T), they said.

State-owned Development Bank of Japan is also considering bidding, with the intention to team up with a successful bidder, said another source.

All the potential bidders declined to comment.