Advantage Partners to bid $2.2 bn for Tokyo Star
Japanese private equity fund Advantage Partners said it would launch a bid for Tokyo Star Bank Ltd worth up to ¥252 billion ($2.2 billion), allowing investment fund Lone Star to cash out of its 68% stake in the lender.
By TNN |
TOKYO: Japanese private equity fund Advantage Partners said it would launch a bid for Tokyo Star Bank Ltd worth up to ¥252 billion ($2.2 billion), allowing investment fund Lone Star to cash out of its 68% stake in the lender.
Advantage Partners said it would offer ¥3,60,000 for each of the 700,000 Tokyo Star shares in issue, a 2.3% premium to Tokyo Star’s closing price on Friday of ¥3,52,000 and 8.5% higher than its 3-month average close of ¥3,31,661.
The news brings to an end a torturous few months for the funds, who have had to steer the deal through a storm in global credit markets and a tough regulatory review.
Advantage had been expected to pay close to ¥410,000 per share but had trouble gathering the necessary firepower from lender banks, who were afraid that any loans would have to be quickly marked down because of violent swings in credit prices, sources familiar with the deal said in October.
Japan’s financial regulator also chose to scrutinise the deal’s structure. Japan has not seen as much private equity activity as the United States or Europe, even though its economy is the world’s second-largest.
But Advantage Partners and Lone Star’s eventual success is further evidence that leveraged buyouts are still possible in Asia, if the terms reflect changed conditions in debt markets.
Advantage Partners said it would offer ¥3,60,000 for each of the 700,000 Tokyo Star shares in issue, a 2.3% premium to Tokyo Star’s closing price on Friday of ¥3,52,000 and 8.5% higher than its 3-month average close of ¥3,31,661.
The news brings to an end a torturous few months for the funds, who have had to steer the deal through a storm in global credit markets and a tough regulatory review.
Advantage had been expected to pay close to ¥410,000 per share but had trouble gathering the necessary firepower from lender banks, who were afraid that any loans would have to be quickly marked down because of violent swings in credit prices, sources familiar with the deal said in October.
Japan’s financial regulator also chose to scrutinise the deal’s structure. Japan has not seen as much private equity activity as the United States or Europe, even though its economy is the world’s second-largest.
But Advantage Partners and Lone Star’s eventual success is further evidence that leveraged buyouts are still possible in Asia, if the terms reflect changed conditions in debt markets.
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