Seibu Group Values Seibu Railway Stock at 920 Yen Per Share
Posted on: Thursday, 10 November 2005, 12:00 CST
By Kyodo News International, Tokyo
Nov. 10--TOKYO -- The Seibu group has evaluated Seibu Railway Co. stock at around 920 yen a share, 20 to 30 percent below takeover bid prices expected to be proposed by two members of the group founding family, sources familiar with the matter said Wednesday.
The group is expected to announce the evaluated per-share price after a board meeting to be held Thursday as it has agreed on the figure with the Cerberus Group of the United States and Nikko Principal Investments Japan Ltd., the sources said.
The Seibu group struck a capital tie-up deal with the two investment firms last month.
The two family members, Yuji Tsutsumi and Seiji Tsutsumi, are poised to launch a tender offer, proposing 1,150 yen to 1,300 yen per Seibu Railway share, in a move to counter efforts by Takashi Goto, current president of the railway operator.
Goto is working with Yoshiaki Tsutsumi, former chairman of Kokudo Corp., to move the Seibu group into a holding company structure. Tsutsumi, who was convicted last month for falsifying financial statements, had used privately held Kokudo to control the group.
At Thursday's board meeting, the Seibu group will also decide that the Cerberus Group and Nikko Principal will provide 90 billion yen and 50 billion yen, respectively, in capital for Kokudo's plan to raise up to 160 billion yen for the revival of the Seibu Railway group, the sources said.
The investments by the two, if implemented, would reduce Kokudo's stake in a planned holding company to 10 to 20 percent.
Kokudo effectively owned nearly 90 percent of Seibu Railway shares over five years and six months up to May 1996, according to a Kokudo report made available recently.
The Seibu group is planning to put its railway and related operations as well as hotel and resort businesses under a holding company structure.
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Source: Kyodo News International, Tokyo
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