January 07, 2011

Goldman to Exit Accordia Golf

Accordia Golf Co. (2131) announced that Goldman Sachs will sell all its shares of the golf course operator. Through its group company, Goldman has been Accordia's largest shareholder with a stake of 44.7% - worth JPY 37 billion or USD 447 million at yesterday's market closing price. Accordia also announced the termination of its operational partnership agreement with Goldman. After purchasing a string of Japanese golf courses following the bubble burst in the 90s, Goldman took the golf course operator public in 2006. At the time of the IPO, Accordia was managing 10 golf courses for Goldman. Since then Accordia has acquired the bulk of the courses and currently manages just one on behalf of Goldman.

At today's opening, Accordia's stock price plunged as much as 13%. The sale price will be determined based on the closing price on a date between January 17th to 19th. Accordia will buy back its shares up to JPY 2 billon (USD 24 million).

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