TPG may support struggling Olympus

TPG may inject up to $1 billion into the company alongside a strategic partner, Bloomberg reported, citing a person familiar with the matter. While the private equity firm has held talks with potential partners, it is unclear whether a deal will be pursued.

Olympus has restated more than five years of earnings after admitting to an accounting fraud that facilitated the cover of $1.7 billion in losses. The company inflated fees paid to advisers regarding the $2.1 billion acquisition of Gyrus Group Plc in 2008 as well as overpaying for three Japanese companies. It has sued 19 current and former officials, including Tsuyoshi Kikuwaka, the former chairman, over the fraud.

Olympus' stock fell 59% last year as the scandal emerged, making it the fifth-worst performer on the Nikkei 225 Stock Average.

TPG recently lost out on another sizeable deal in Japan as J Trust took control of debt-ridden consumer lender Takefuji, injecting a reported JPY25.2 billion ($325 million) into the firm.

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• Topics
• North Asia
• Buyout
• Technology
• TPG Capital
• Japan
• buyout