The US firm will cut its stake to 20 per cent from 35.5 per cent, according to regulatory filings.
Seibu’s IPO on the Tokyo Stock Exchange will be worth around $1.8bn, sources told Reuters.
Last year Cerberus upped its stake in Seibu via a tender offer, falling short of its goal of nearly 45 per cent. Seibu opposed the US firm’s efforts to increase its shareholding with president Takashi Goto saying that proposals from Cerberus would hurt the company’s mid- and long-term strategy.
Cerberus Asia Capital Management, Nikko Principal Investments Japan and other investors agreed to invest up to Y160bn ($1.38bn) in Seibu in November 2005, with Cerberus becoming the biggest shareholder.
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