Cerberus to Hold 30% Stake in New Seibu Group Holding Firm
Posted on: Thursday, 10 November 2005, 12:00 CST
By Kyodo News International, Tokyo
Nov. 10--TOKYO -- U.S. investment fund Cerberus Group will become the largest shareholder in a new holding company for the Seibu Railway Co. group with a 30 percent stake under recapitalization and revival plans which were unveiled Thursday.
Under the deal to help revive the Seibu Railway group, Nikko Principal Investments Japan Ltd. will also hold a 15 percent stake in the holding company which will control two operating units -- Seibu Railway and Prince Hotel Co., according to the plans.
The agreement with Cerberus and Nikko Principal values Seibu shares at 919 yen each, which is below a tender price between 1,150 and 1,300 yen offered by the brothers of Yoshiaki Tsutsumi, a former chairman of Kokudo Corp., a privately held hotel and sports facility chain operator that effectively controls the Seibu Railway group.
Yuji Tsutsumi, brother of Yoshiaki Tsutsumi, and his half-brother Seiji Tsutsumi earlier said they will launch a public tender offer for shares of Seibu Railway.
Seibu Railway will seek shareholders' approval for the plans at extraordinary shareholders' meetings later this month and next month, and would then reorganize the group possibly in late March next year.
Under the plan, NW Corp., a holding company Kokudo is to establish, will hold a 14.99 percent stake.
Kokudo will issue new shares in a related move that would reduce the ration of stock held by Yoshiaki Tsutsumi, now its largest shareholder with 36 percent.
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Source: Kyodo News International, Tokyo
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