Cerberus will sell the stake to Kokusai’s founding family, which currently controls 45 per cent of the company, for between $1.25bn and $1.34bn, said Reuters, citing people with direct knowledge of the deal.
The price reflects the company’s recent sale of a property in central Tokyo for JPY80bn ($766.8m), said the sources.
The US private equity firm backed Kokusai Kogyo in 2004.
Last year Cerberus raised 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.
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