Cerberus extends tender for Seibu shares
Cerberus Capital Management is to extend the deadline to buy more shares in Japan's Seibu Holdings until May 31. The US private equity firm, already the largest shareholder in Seibu with a 32.44% stake, has been trying to boost its holding to 44.7% through a public tender offer that was due to end on May 17.
If acheived, the stake increase will allow Cerberus to nominate nine members of the Japanese rail and hotel operator's 18-strong board and the power to veto major board proposals at shareholders meetings.
According to a public filing, the decision to reschedule came after inquiries from shareholders continued even after the tender offer period was extended. Numerous shareholders had indicated a desire to participate in the tender but hadn't completed all necessary steps.
The decision is the latest development in an escalating row between Cerberus and the management of Seibu, which opposes the firm's actions. Relations between the two parties had soured following a dispute over the timing and pricing of an IPO last year.
Cerberus initially paid $802 million for a 29.9% stake in the company in 2006, participating in a $1.2 billion bailout alongside Nikko Principal Investments. Seibu was delisted from the Tokyo Stock Exchange in 2004 after misstating stakes held by shareholders in contravention of exchange rules.
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