Japanese volatility prompts firms to change course
In light of the market volatility prompted by last week’s devastating 9.0-magnitude earthquake in Japan, the plans of at least two private equity-related companies have been delayed to await a more stable business environment.
The deadline for bidders of distressed consumer lender Takefuji Co. has shifted from March 22 to March 31. This affects its supposed acquisition suitors TPG Capital, Cerberus Capital Management, domestic trade player J-Trust, Tokyo Star Bank and Korea's A&P Financial. "Considering the impact of the latest earthquake, we have decided to delay the deadline," Takefuji said in a statement, according to Reuters.
Likewise, the financing for Bain's buyout of domestic restaurant manager Skylark Co. has also been suspended, the newswire reported, noting that lenders are hesitant to front capital for the up-to $3.4 billion deal. The report adds that Mitsubishi Financial UFJ, Mizuho Financial Group, Sumitomo Mitsui Financial Group and Shinsei Bank are among the institutions in negotiation with Bain for the deal. The asset is set to be sold by Nomura Principal Finance, the investment arm of Nomura Holdings, which currently owns 78.6 % of the restaurant chain.
A world away, US private equity firm Apollo Global Management also announced it would hold its IPO until the stock exchange domino effect, which has reached American bourses, blows over.
Global exchanges have been reeling in past weeks, first affected by the political unrest in the Middle East followed by the crippling earthquake and subsequent tsunami in Japan.
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