American private equity group Cerberus Capital Management LP has decided to offload its entire majority holding in Japan-based property operator Kokusai Kogyo Co, according to people with direct knowledge of the transaction. This was according to a report published by Reuters.
The said unnamed sources said under the terms of the deal, Cerberus' stake will be sold to the Japanese firm's founding family for JPY130 billion to JPY140 billion ($1.25 billion to $1.34 billion), the report detailed.
Kokusai Kogyo is 55% owned by Cerberus, and the remaining 45% is owned by its founding family, the report added.
The US-based firm's decision to exit from Kokusai Kogyo comes after Japanese railway operator Seibu Holdings Inc decided to apply for a Tokyo relisting this week. Seibu is currently negotiating a proposed stake sale by top shareholder Cerberus, the report explained.
Cerberus invested in Kokusai Kogyo in 2004. Both companies have yet to comment on the said exit, Reuters reported.
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