Cerberus to boost stake in Japan's Seibu

The New York-based private equity firm has already paid over JPY100 billion ($1.04 billion) to become Seibu's biggest shareholder and hopes to buy shares in Seibu from other owners via a public tender. The transaction will bring its current stake of 32.4% to 36.44%, according to Reuters.

Cerberus has offered to buy the Seibu shares at JPY1400 apiece, a three-fold premium to the last trading price of JPY485. The tender offer will start from Tuesday.

Meanwhile, Seibu is reported to have hired five investment banks including Nomura Holdings and Mizuho Securities to handle its planned IPO, which could value the company as high as JPY1 trillion.

Cerberus led a bailout of Seibu, which also operates department stores and hotel chains, in 2005 after the predecessor to the current company, Seibu Railway, was delisted as a result of making a false entry in its securities report. The company is the seventh-largest railway operator in the Tokyo area by ticket sales.

Cerberus also plans to recommend Hirofumi Gomi, a former commissioner of Japan's Financial Services Agency, Masaharu Ikuta, former president of Japan Post, and Yuji Shirakawa, former chairman of Citigroup Global Markets Japan, for the board of directors at a shareholders' meeting scheduled in June.

Earlier this year Cerberus raised around $1.7 billion when it exited its 58% stake in Aozora Bank following a nine-year holding period.

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• Topics
• North Asia
• Exits
• Investments
• Financials
• Credit/Special Situations
• Cerberus Capital Management
• Japan
• IPO
• Exit