Global investment firm KKR is set to collect initial bids next month for Central Tank Terminal, a Japan-based fuel storage operator, six sources familiar with the matter said.

Potential bidders looking at the Tokyo-based target include multiple Japanese private equity firms, according to the sources, one of whom said that infrastructure funds are showing interest as well.

Information memoranda have already been distributed, four of the sources said.

The target operates 12 tank terminals in Japan and one in South Korea, as well as two grain silo terminals in South Korea, this news service reported on 17 April.

KKR wants to sell the entire target at once, but bidders can propose acquiring either of the Japan or Korea business, one of the sources said.

On 13 February, this news service exclusively reported that KKR was exploring the sale of Central Tank Terminal, retaining Nomura Securities as the financial advisor for an auction.

A deal could fetch an enterprise value of USD 350m or more, according to the February report.

According to a local report on 26 May, the deal value is estimated at about KRW 1tn (USD 670m). Swedish private equity firm EQT Partners has emerged as a leading bid candidate in the process, the report said.

KKR fully acquired the target in 2021 from Macquarie Infrastructure & Real Assets.

KKR declined to comment.

[Editor’s note: This article was updated to add details on the estimated deal value and the emergence of EQT Partners as a leading bid candidate.]