Olympus Finds Itself a Willing Investor in TPG Capital 0

Olympus might be doing some teasing with it’s new campaign for an up-and-coming camera related to its OM system, but that’s not something they can afford to do when it comes to the future of the company.

Olympus has been through its fair share of scandal and woes these past few months, with the discovery that its top executives had connived to cover losses on investments that the company has incurred, dating from the 1990s. With Olympus standing on shaky ground, other camera manufacturers and firms are slowly circling overhead, ready to swoop in with their investments and maybe an eventual takeover of the company.

Olympus

In line with this, private equity firm TPG Capital have expressed their interest in investing $1 billion into the beleaguered company. This will be as part of a joint deal between itself and Sony Corporation or with another firm that might be interested in acquiring Olympus. These include Canon Inc, Fujifilm Holdings, and Panasonic Corporation.

Tetsuro Ii, a chief executive of Commons Asset Management, commented: “My impression is that the chance of private equity getting involved in Olympus is 50-50. The strategic partner would need to eventually buy out the fund at a higher price. But the fact is Olympus has made a lot of acquisitions to date, much of which will need to be disposed of or restructured. It probably makes more sense to work with a value-up fund to get that done.”

TPG declined to comment on the matter.

[Reuters]