In this file photo taken on Jan 17, 2019, a woman passes by the logo of Hitachi prior to a press conference at the company’s headquarters in Tokyo. (BEHROUZ MEHRI / AFP)

Hitachi Ltd is considering options to streamline its business including the potential sale of its minority stake in a transportation unit, according to people familiar with the matter.

The Japanese conglomerate is working with a financial adviser to field interest for its 40 percent stake in Hitachi Transport System Ltd, the people said, asking not to be identified because the matter is private. Potential buyers for the stake, worth about $1.6 billion at Hitachi Transport’s current market value, include private equity firms and industry players, the people said.

Founded in 1950, Hitachi Transport’s logistics services include heavy equipment and business relocation as well as air and ocean freight and cross-border transport, according to its website

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Hitachi shares climbed as much as 3.3 percent, their biggest gain since Nov 1, while Hitachi Transport Systems shares jumped more than 12 percent to trade at their highest on record following the news. They have risen more than 75 percent this year, valuing the company at $4 billion.

Considerations are preliminary and Hitachi could still decide to retain the stake, the people said. A representative for Hitachi declined to comment.

The industrial conglomerate has been overhauling its business, which extends from kitchen appliances to power grids. It has signed a string of multibillion-dollar deals including the $9.6 billion purchase of US software development company GlobalLogic Inc. A $3.5 billion deal announced in April to sell a stake in Hitachi Metals Ltd. to a group led by Bain Capital has faced regulatory delays. 

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Founded in 1950, Hitachi Transport’s logistics services include heavy equipment and business relocation as well as air and ocean freight and cross-border transport, according to its website. Net income in the six months through September dropped 31 percent from a year earlier to 9.1 billion yen, while revenue for the same period climbed 17 percent, the company reported.