Carlyle to acquire Japan's SBI Mortgage

SBI Mortgage's current parent SBI Holdings will invest JPY2 billion and Tokio Marine Mezzanine Partners I will provide JPY5 billion in the form of preferred shares to the acquisition vehicle, CSM Holdings. The latter reached a first close of JPY25 billion in May.

According to a release, the tender offer is being conducted simultaneously in Japan and Korea with CSM looking to acquire 16.7 million common shares in Japan and 6.9 million Korean depository receipts (KDR). The offer price was set at KRW18,000 per KDR, a 42.6% premium over the last six months average KDR price.

SBI Mortgage issues, services and securitizes mortgage loans. It is focused on providing long-term fixed-rate mortgage loans to new customers and increasing origination volume. Cumulative loan origination volume increased from JPY300 billion in April 2007 to more than JPY900 billion in March 2011. It stood at over JPY2 trillion in May 2013.

This offer comes less than two weeks after Carlyle agreed to acquire Sunsho Pharmaceutical, a contract manufacturer in the Japan's health and nutrition (H&N) industry. One month before that, the PE firm bought a controlling stake in Oyatsu Company, the Japanese manufacturer of Baby-Star ramen snacks.

Both investments come via Carlyle Japan Partners III, which launched in May last year with a target of around $1 billion.

 

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• Topics
• North Asia
• Financials
• Buyouts
• Buyout
• Japan
• South Korea
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• The Carlyle Group
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