Cerberus raises about $1.7 bln by selling Japan's Aozora stake

HONG KONG Jan 16 (Reuters) - U.S. private equity firm Cerberus Capital Management LP has raised about $1.7 billion by selling shares in Japan's Aozora Bank Ltd, according to a term sheet seen by Reuters on Wednesday.

Aozora sold the shares at 231 yen each, a 3.3 percent discount to Wednesday's closing price, the terms showed.

Cerberus, which has been the controlling shareholder in the mid-sized Japanese lender for much of the past decade, launched the sale on Jan 7.