J-Star to sponsor a MBO of Apo Plus

J-Star has sponsored an MBO of Apo Plus Station, a provider of contract marketing services to drug and medical devise industries. J-Star made an equity investment of JPY 0.43 billion (USD 5 million) to hold a majority stake. Apo Plus is the second largest CSO in Japan and its annual sales were JPY 5.5 billion (USD 65 million) for the March 2010 period. It plans to increase its medical representatives from the current staff of 350 to 550 in the next 3 years.

DBJ, 2 Mega Bks & Mitsubishi Co To Set Up Turnaround Fund

The Development Bank of Japan (DBJ), Sumitomo Mitsui Banking Corp (SMBC), Bank of Tokyo-Mitsubishi UFJ (BTMU) and Mitsubishi Co. announced that they will set up a corporate rehabilitation fund with 30 billion yen to invest. They will also establish "Japan Industrial Solutions Co." to manage the fund as a GP.

Takefuji Files For Bankruptcy

Takefuji Corp. a listed leading consumer lender filed for bankruptcy protection with Y 433.61 billion in outstanding debt. Takefuji was Japan's biggest lender with outstanding loans of 1.77 trillion yen in 2002, but it has fallen to the fourth with a loan size of about 589 billion yen in 2010. All consumer loan firms have been burdened by mounting claims by customers for reimbursement for excessive interest charges.

3i To Buy Mizuho Investment Management(UK)

3i Group plc, one of the largest private equity firms in Europe, announced that it has reached an agreement with Mizuho Corporate Bank to acquire Mizuho Investment Management (UK) Limited. Mizuho Investment Management is the leading debt management business in Europe with assets under management of 3.7 billion GBp. The acquisition consideration is 18.3 million GBp.

Prudential May Purchase 2 AIG Units

US giant Prudential Financial Inc. is expected to acquire AIG Edison Life Insurance Co. and AIG Star Life Insurance Co. from American International Group Co., according to Nikkei. AIG already sold its insurance unit Alico Japan to Met Life this year. These moves by AIG have been in line with its first priority to repay taxpayers who are owed more than $90 billion from a government bailout. Prudential plans to build up a more solid foundation in Japan by acquiring those 2 units.

Public-Private Infrastructure Fund To Start With Y50bn

A proposed public-private fund to promote infrastructure investment will likely begin with 45-50 billion yen, according to Nikkei. The government is considering launching the fund next fiscal year, mindful of the difficulty in allocating funds for public works amid tight fiscal constraints. It is hoping to tap private-sector money to carry out infrastructure development projects.

Banks' Net JGB Buying Hits Record In 1st Half

Domestic banks bought 14.5 trillion yen more in Japanese government bonds than they sold in the January-June period, the largest net purchase for a half year since comparable dates became available in 2004, according to Nikkei. The data highlights the lackluster situation in which the banks had little choice but to invest idle cash in JGBs as businesses and individuals, lacking confidence in Japan's economic outlook, refrained from borrowing.

Govt-backed PE Fund To Help 2 Die Firms To Merge

Fuji Technica Inc., the second-ranked metal mold manufacturer, announced that it will acquire Miyazu Seisakusho So., the third-ranked mold maker, with financial help from the ETIC, a government-backed turnaround body. Miyazu, which has closed down one of two factories and trimmed its workforce from 450 to 130, will transfer its operations to Fuji and begin the liquidation process.
The ETIC will invest 5.3 billion yen in Fuji Technica while Fuji Technica will ask major banks including Shizuoka Bank to securitize a total of 3.13 billion yen in debt.

SBI To Launch Fund With Abu Dhabi's Invest AD

SBI Holdings Inc., a Japanese financial conglomerate, announced that Abu Dhabi financial services firm Invest AD and SBI will set up a new fund management company to invest in Africa, starting with a fund of up to $100 million. The new fund, seeded equally by Invest AD and SBI, will focus on Nigeria, Ghana, Kenya, Egypt, Tunisia and Morocco. It will invest in several sectors, including banking, mining, consumer products and manufacturing, through listed equities, unlisted equities, initial public offerings, as well as pre-IPO.

Incubator Bank To File For Bankruptcy

The Financial Services Agency declared the Incubator Bank of Japan insolvent and ordered a halt of operation for three days through Sunday. The Tokyo-based small business lender plans to file for bankruptcy protection today. The government will insure customers' deposits up to 10 million yen plus interest. The bank was established in 2004 as a specialist in small business loans and ended up with bad loans worth an estimated 170 billion yen.

Orix To Buy South Korean Bank For Y8.5bn

Orix Corp. decided to spend 8.5 billion yen to buy South Korean regional bank Pureun Mutual Savings Bank No.2, according to Nikkei. The Japanese leasing giant has negotiated with parent Pureun Mutual Savings Bank to purchase a roughly 85% stake.

Yen Hits Highest Against $ Since May 95

The yen gained strength Wednesday afternoon, briefly trading at around 83.35 to the dollar, its highest level since May 31, 1995.

Zeria Pharma To Buy Danish Peer

Zeria Phamaceutical Co., a medium-scale pharmaceutical manufacturer, announced that it will acquire an 85% shares in Biofac Esbjerg, a Danish drug company from the founding family. With Biofac being a subsidiary of a chondroitin producer, Zeria will expand its marketing of chondroitin in Europe and the US.

Big Banks, DBJ To Launch New Corporate Rehab Fund

Two major banks are partnering with the Development Bank of Japan to set up as early as month's end a corporate turnaround fund aiming to invest as much as 100 billion yen, according to Nikkei. The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Corp., and the state-backed DBJ will pool their resources in the turnaround fund, which will help companies back onto their feet.

Internet Firms Spending Aggressively On M&A

Five major Japanese Internet firms spent about 68 billion yen ($806 million) on M&A deals and investments in venture businesses in the January-July period, more than triple the amount they did during all of last year, according to Nikkei. They are Rakuten, Softbbank, Cyber Agent, DeNA and Gree, using the money mainly to move into new sectors such as a social networking, and to expand overseas.

Osaka Securities Exchange Ties Up With Shenzhen Exchange

The Osaka Securities Exchange, the Japan's largest derivatives exchange, announced that it has signed a memorandum of understanding with the Shenzhen Stock Exchange to build a cooperative relationship toward the development of financial markets, especially in the area of the growth markets, in China and Japan.