TOKYO Jan 17 U.S. private equity firm Cerberus
Capital Management LP has decided to sell its entire
majority stake in Japanese property operator Kokusai Kogyo Co to
its founding family for 130-140 billion yen ($1.25-1.34
billion), people with direct knowledge of the deal said.
Kokusai Kogyo is 55 percent owned by Cerberus and 45 percent
by the founding family. The U.S. company has agreed in principle
to sell all of its stake, said the sources, who were not
authorised to discuss the matter publicly.
The agreed price reflects Kokusai Kogyo's sale last December
of a property in central Tokyo to a consortium led by Nippon
Life Insurance Co, Japan's biggest private-sector
life insurer, for about 80 billion yen, the sources said. The
property's sale has not previously been reported.
Cerberus was not immediately available for comment. Kokusai
Kogyo said no one was immediately available to comment.
Cerberus' exit from Kokusai Kogyo, in which it invested in
2004, comes on the heels of a decision this week by Japanese
railway operator Seibu Holdings Inc to apply for relisting on
the Tokyo bourse as it negotiates a proposed sale of its stake
by top shareholder Cerberus.