Japanese railway and hotel group Seibu Holdings Inc struck an agreement with Cerberus Capital Management LP for a Tokyo listing in April, according to sources familiar with the matter. Cerberus is the top shareholder in Seibu, wrote Reuters.
For months, the two firms have been involved in a high-profile dispute over the Japanese company's return to the Tokyo Stock Exchange. The planned deal would allow Cerberus to cash out on a portion of its $1-billion investment, the report detailed.
The unnamed sources said the US fund has agreed to divest a 20% stake in Seibu from its present 35.48% holding. After the agreement, Seibu Holdings President Takashi Goto held an overnight teleconference with Cerberus chief Stephen Feinberg, the report explained.
Seibu Holdings will file for a listing with the Tokyo bourse on Wednesday. Companies usually list their shares at least two months after filing an application, the report added.
While Seibu had been targeting a listing at the soonest possible time, Cerberus had been pressuring the Japanese firm to improve its management and earnings before an launching an initial public offering (IPO), Reuters reported.
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