2 Real Estate Group Companies To Go Private via MBO

Tachihi Enterprise Co., Ltd., a listed Tokyo-based real estate developer, and New Tachikawa Aircraft Co., Ltd., a listed airplane-parts maker as well as real estate leasing company, announced that both companies have accepted the tender offers from a private firm set up by the CEOs of both companies. They have had cross-shareholdings since New Tachikawa was spun off from Tachihi in 1949. The TOB price for Tachihi is set at 6,300 yen, a 36.67% premium over its 3 month average. The TOB price for New Tachikawa Aircraft is set at 5,200 yen, a 67.21% premium over its 3 month average. Other major shareholders have agreed to tender their shares. Mizuho Bank is ready to provide up to about 83 billion yen in financing.

ETIC To Invest In Troubled Mold Maker

ARRK Co., a listed holding company of DIE & Mold Engineering Co. Ltd., announced that Enterprise Turnaround Initiative Corp of Japan (ETIC), underwrote 150,000,000 common shares issed by ARRK for 9 billion yen. ETIC will be the largest shareholder. As Mizuho Bank and the Bank of Tokyo-Mitsubishi UFJ accepted the debt-equity swap, ARRK will reduce its debt by 20 billion yen. The company, once an aggressive buyer of its competitors, became financially troubled with the decreasing sales and is now under a restructuring process.

Social Game Developer To Go Public For The First Time

KLab Inc., a leading social game developer, announced that KLab will be listed on the Tokyo Stock Exchange on the 27th of September. SBI Group, a financial conglomerate, has invested in this company. It is the first time a social game developer will be listed on the stock exchange in Japan. KLab was founded in August 2000.

Osaka Port Development To Go Private

Osakakoshinko Co., Ltd., a listed Osaka-based port and building management company, announced that Osakakoshinko approved a tender offer by Tasumi Shokai Co., Ltd., a private Osaka-based logistics company. The TOB price is set at 2,650 yen, a 37.7% premium over its 3 month average. Tatsumi Shokai is the largest shareholder of Osakakoshinko. Osakakoshinko will be delisted upon the successful conclusion of the deal.

Mitsubishi Corp To Tender Offer For Food Container Maker

Mitsubishi Corporation, a leading trading company, announced that Mitsubishi will conduct a tender offer for shares of Chuo Kagaku Co., Ltd., a listed major manufacturer of plastic food containers. The TOB price is set at 386 yen, a 2.4% premium over its 3 month average. The major shareholders in Chuo Kagaku agreed to tender their shares. Chuo Kagaku will cultivate a fast-growing market in China with support from Mitsubishi and completely get rid of its non-core businesses like its golf-course development. Mitsubishi plans to convert the food container maker into a consolidated subsidiary through this deal.

Ex-Sanwa GCM Bids For Failed Incubator Bank

GCM Ltd., a Tokyo-based investment bank set up by former Sanwa bankers with a Chinese investment fund, is in the bidding process for the bankrupt Incubator Bank of Japan. Another competitor is AEON Bank, the banking unit of AEON Group, a major retailing group. The auction conductor, Deposit Insurance Corp. of Japan, will select a sponsor by September. The SME-targeted Incubator Bank of Japan filed for Chapter 11 last September.

Murata Machinery To Launch Tender Offer For silex technology

Murata Machinery Ltd., a private machine tool manufacturer, announced that it has launched a tender offer for Silex Technology Inc., a listed network-related solution provider. The TOB price is set at 58,000 yen, a 72% premium over its 3-month average. Silex approved the offer. Murata Machinery, using Silex's wireless technology, plans to develop the FA system, aiming for higher productivity.

INCJ To Establish Japanese Contents Exporter

INCJ, a public-private investment fund, announced that INCJ set up the new company "All Nippon Entertainment Works Co., Ltd." which will remake Japanese stories, characters, etc. and undertake planning and development activities targeting the global market. INCJ has decided to make a 6 billion yen investment. The new company will work with "Collaboration Partners" like an advertising agency, film/cartoon makers, TV broadcasters, toy makers, and trading companies.

Unified Partners To Exit Investment In Home Builder

Yamada Denki Co. Ltd., a leading volume home appliance retailer, announced that Yamada will launch a tender offer for SXL Co. Ktd., a PE-backed custom home builder. The TOB price is set at 65 yen, the same as its 3 month average. Yamada plans to keep SXL listed on the exchange. Unified Partners, one of the investment units of Nomura Securities Group, made an investment in 2005 and decided to tender their shares in this offer.

CAS Capital To Exit Investment In Restaurant Chain Operator

H2O Retailing Co., a holding company of Hankyu Hanshin Department Stores Group, announced that H2O will conduct a tender offer for Kazokutei Co., Ltd., a PE-backed Japanese food restaurant chain operator. The TOB price is set at 750 yen, a 45% premium over its 3-month average. CAS Capital, a Tokyo-based midsized private equity firm, made an investment in 2007 and became the largest shareholder (57.1%). CAS Capital approved the offer. H2O plans to strengthen its food business through this acquisition.

PE-backed Materials Maker To Sell Its Wafer Business

Covalent Materials Co., a leading-edge materials maker, announced that Covalent and Sino-American Silicon Products Inc., a major Taiwanese silicon wafer maker, have agreed to transfer Covalent's silicon wafer business to Sino-American Silicon Products. Covalent will concentrate its resoures on its ceramic business. Covalent, formerly Toshiba Ceramics, went private via MBO with The Carlyle Group, a global mega buyout shop, and Unison Capital, a major Japnese buyout shop, in 2006.

Arrow Electronics To Launch Tender Offer For Chip One Stop

Arrow Electronics, Inc. announced that Arrow will launch a tender offer to acquire all of the common stock of Japan-based Chip One Stop, a provider of shopping sites for electronic components and semiconductors for a purchase price of 220,000 yen per share. The TOB price has a 204% premium over its 3-month average. Arrow is a NY-based global distributer of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Through this acquisition, Arrow can expand its presence in Japan as well as strengthen its e-commerce capabilities.

Higashiyama Film To Go Private With CITIC Japan

Higashiyama Film Co., a Nagoya-based special film maker, announced that Higashiyama Film accepted a tender offer from an investment vehicle set up by CITIC Capital Partners Japan., a Japan-focused private equity firm of CITIC Capital Group. The TOB price is set at 970 yen, a 29.2% premium over its 3-month average. The investment vehicle made a tender offer last May and became the largest shareholder (63.12%). Higashiyama Film will be delisted upon the successful conclusion of the deal.

Nichii Gakkan To Tender Offer For English School Operator

Nichii Gakkan Co., a broad-range service provider in medical support & health care, announced that Nichii Gakkan made a tender offer for GABA, a listed English language school operator, at 2.000 yen, a 77.1 % premium over a 3-month average. GABA approved the tender offer. The Bank of Tokyo Mitsubishi-UFJ is ready to provide up to 10.1 billion yen in financing. Nichii Gakkan plans to expand its education business in English and IT in addition to medical sectors and utilize GABA's e-learning systems through this acquisition.

Nagase & Co. To Sponsor Failed Food Ingredient Maker

Nagase & Co., a listed chemicals-focused trading company, announced that Nagase will sponsor bankrupt Hayashibara Co., an Okayama-based biochemical maker. Nagase won through the bidding process. Other competitiors were CJ Group with Unison Capital, Gun Ei Chemical Industry Co. with Polaris Capital, and JT alone.

MASPRO To Go Private Via MBO

MASPRO DENKO Co., a major TV reception-related equipment manufacturer, announced that it has accepted a tender offer from an investment vehicle set up by the current CEO of MASPRO. The TOB price is at 1070 yen, a 65.1% premium over its 3 month average. Mitsui Sumitomo Bank is ready to provide up to 20.3 billion yen in financing.

Nihon Unisys To Collaborate With PE-backed Software maker

Nihon Unisys, Ltd. a listed system integrator, announced that Nihon Unisys will start a business collaboration with Works Application Co., Ltd., an ERP-focused package software developer and maintenance provider. Works Application went private via MBO with Polaris Capital, a midsized buyout shop, and Karita &Co., a Tokyo-based private equity firm this February. Nihon Unisys will sell products of Works to Unisys's customers and vice versa since they are complementary in their customer bases.

KDDI Group Bot VC-backed Ad Agency Start-up

mediba Inc., a KDDI-affiliated mobile services provider, announced that it has acquired Nobot Inc., a smartphone-focused ad agency. Nobot was founded in April 2009 and has rereceived investments from Samurai Incubate Inc., ngi group, JAFCO and Nissay Capital.

Hony Capital To Invest In Hotel Chain Operator In Japan

Tokai Kanko Co., a listed medium-sized hotel chain operator, announced that Tokai Kanko will allocate new shares to Hony Capital, a China-based private equity firm, for about 1.4 billion yen and set up a SPC with Hony to invest in hotels. Hony will pay 2.7 billion yen for a 40% stake of the SPC. It plans to acquire a hotel located in Osaka from Aetos Japan., a Japan-focused US property fund.

Phoenix Capital To Sponsor Failed Regional Dept Store Operator

Phoenix Capital, a turnaround-focused private equity firm, announced that Phoenix has signed a sponsorship agreement with Nakasan Co. Ltd., a bankrupt Tohoku-based department store operator. Nakasan filed for court protection with debts of 11. 4 billion yen this March. Phoenix starts to make a revitalization plan with Nakasan to acquire its approval from the court.