Mitsubishi Heavy Industries agreed to sell its controlling stake in forklift manufacturer Mitsubishi Logisnext to private equity firm Japan Industrial Partners through a complex transaction valued at approximately ¥74.5 billion ($506 million).
The Japanese conglomerate, which owns 64.6% of Mitsubishi Logisnext, will not participate in JIP’s tender offer set at ¥1,537 per share. Instead, Mitsubishi Heavy will sell its shares back to the subsidiary at ¥1,081 per share following a share consolidation procedure. The arrangement allows the parent company to benefit from tax advantages while maintaining economic parity with minority shareholders on an after-tax basis.
The transaction reflects Mitsubishi Heavy’s strategic shift toward gas turbines, nuclear power and defense systems. Management cited the need for accelerated investment in logistics automation and direct sales channels—areas where the parent company has chosen not to allocate capital given competing priorities.
JIP will invest through LVJ Holdings 2 LLC, with Mitsubishi Heavy reinvesting ¥30 billion ($204 million) in non-voting preferred shares. The conglomerate expects to record a ¥40 billion ($272 million) gain on its standalone accounts but a ¥30 billion ($204 million) consolidated loss due to reorganization costs.
The tender offer, targeting late December launch pending regulatory clearances, follows a competitive bidding process that began in November with 14 potential buyers. Share prices had surged following December media reports about the potential sale, creating valuation complications that delayed final negotiations.
