Longreach bids for Sanyo Electric Logistics

Sanyo Electric will sell its entire 57.67% stake in the group, which will be delisted.

The private equity firm will pay JPY 1,750 ($19.12) per share, a 54% premium over the last 6-month average trading price, valuing 100% of the company at JPY17.9 billion ($195 million). Sanyo Electric said after the transaction is complete, it will purchase a 5% stake in the new structure.

The market has heard little from Longreach in the way of Japan deals for some time. It has been nearly four years since it since its 2007 investment in Cybird Co., Ltd.  Industry sources noted that this is likely because the second fund, launched in 2008, is now about 70%-80% funded and likely to close soon. This investment is then rumored to come from remaining capital in the first fund (JPY 89.5 billion or $981 million as of the current exchange rate), which was launched in 2003.

With Longreach on the hook to take the full 57.67% stake from Sanyo Electric, the only question remaining is to what extent the offer price attracts other shareholders looking to exit.

PricewaterhouseCoopers has acted as financial advisors for Sanyo and Abe, Ikubo& Katayama was appointed as legal advisor.

Sanyo Electric said in a statement, “As a result of its internal review… the necessity to keep management rights for Sanyo Electric Logistics has diminished as the subsidiary company plans for further growth by targeting companies outside the Sanyo Group with its solutions business, while offering a part of its logistics services to the Sanyo Group.”

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• Topics
• Buyouts
• Industrials
• North Asia
• The Longreach Group Limited