Dysentery delays Bain's Japan Skylark buyout-Basis Point

HONG KONG, Sept 28 Wed Sep 28, 2011 6:41am EDT

HONG KONG, Sept 28 (Reuters) - Private equity fund Bain Capital LLC's planned buyout of Japanese restaurant chain Skylark Co Ltd is on hold after an outbreak of dysentery shut 120 outlets in late August, Basis Point reported on Wednesday, citing bank sources.

The deal, for the asset with an enterprise value of around $3.7 billion, could be delayed by a few weeks, one of the sources told Basis Point.

The restaurants in northeastern Japan reopened on September 26, but both Bain and bank lenders need more time to review the impact on the business, Basis Point reported.

The seller, Nomura Principal Finance, had been aiming to close the deal by the end of this month.

Mizuho Corporate Bank is the bookrunner for a more than 150 billion yen ($2 billion) financing to back the buyout.

Talks on the buyout restarted in June after the deal was delayed by the March earthquake and tsunami. ($1 = 76.655 Japanese Yen) (Writing by Stephen Aldred; Editing by Muralikumar Anantharaman)