Kansai Paint To Launch Bid for South African Firm

Kansai Paint Co., one of the two largest Japanese paint manufacturers, announced that it will make a takeover bid for major South African Paint maker Freeworld Coatings Ltd., in order to make it a wholly owned subsidiary. Kansai Paint already has a 27.6% stake in the Johannesburg-based firm.

BOJ Tankan Shows Business Sentiment Deteriorated

The Bank of Japan Tankan survey showed that Japanese manufacturers' business sentiment worsened for the first time in nearly two years in the last quarter of 2010. Business managers were concerned with the impacts of the surging yen and slowing overseas economies. The end of government subsidiaries for environmentally friendly vehicles and a down scaling of the government-led eco-point program have apparently been a blow to related industries. However, the decline was less than had been expected by many economists.

Gold-Pak To Go Private With iSigma

Gold-Pak Co., LTD. a Nagano-based beverage manufacturer, announced that Gold-Pak approved the take-over bid from an investment firm set up by iSigma Capita, a middle-market buyout firm and a 100% subsidiary of Marubeni Corporation. The investment firm made the bid at 1641 yen, a 56% premium over its 3-month average. Phoenix Capital, Gold-Pak's largest shareholder, and Tokyu Corp., the second largest shareholder, agreed to accept the bid.

Failed Takefuji To Take Bids For Rehab Sponsor

Takefuji Corp., a bankrupt consumer lender, will start the selection process for a rehabilitation sponsor by asking interested parties to submit the proposal, according to Nikkei. The company has received letters of interest from 20 or so firms/funds as of late October.

Japan's Q3 GDP Revised Up To 4.5%

The Japanese Cabinet announced that real gross domestic product grew an annualized 4.5% during the July-September period, exceeding the 3.9% rise initially estimated a month ago. Consumption and capital expenditures proved stronger than initially thought. But many economists already expect a contraction in the fourth quarter due to slowing exports.

Dainkin In Talks To Buy Goodman

Daikin Industries Ltd., a top-ranked Japanese air conditioner maker, is considering various options for possible mergers and acquisitions in the US. Goodman Global Group is one of the targets, according to Nikkei. Goodman is held by Hellman & Friedman LLC, a San Francisco-based private equity firm.

BoT-M'bishi UFJ To Team With Dutch Investment Promotion Agency

The Bank of Tokyo-Mitsubishi UFJ, Ltd.(BTMU) and the Netherlands Foreign Investment Agency (NFIA) signed a cooperation agreement to promote foreign direct investment in the Netherlands. The agreement is expected to be mutually beneficial. The NFIA will be able to leverage BTMU's network for marketing in the Netherlands by Japanese companies while the NFIA's support will enable BTMU to strengthen its capabilities in the provision of quality information and services to Japanese companies.

Invoice To Go Private Via MBO With MBK

Invoice Inc., a listed service provider of consolidating billings, announced that it will accept a tender offer by an investment company set up by MBK Partners. It will launch the tender offer at 1500 yen which is a 37% premium over its 3-month average. Sumitomo Mitsui Bank will offer up to 12.5 billion yen in financing. MBK is an independent private equity firm specializing in the East Asia region.

Orix To Buy Stakes In Vietnamese Investment Firm

Orix Corp., a lease-oriented conglomerate, has acquired a capital stake in Indochina Capital Corp., an investment firm that specializes in Vietnamese real estate, equities, and infrastructure, according to Nikkei. Orix plans to develop large hotels and office buildings in Ho Chi Minh City, Hanoi, and elsewhere with Indochina Capital.

Unemployment Rate Up To 5.1%

The Japanese Cabinet announced that the unemployment rate in October went up 0.1% to 5.1%. The market consensus was 5.0%. Industrial production in October fell 1.8% from a month earlier, according to the Ministry of Economy, Trade and Industry. But the fall was smaller than the economists' estimates, which were around 3.3%.

Keystone To Eye Y15B For Turnaround Fund

Keystone Partners Co., Ltd., a Tokyo-based private equity firm, is raising upward of about 15 billion yen for its inaugural turnaround fund with a deadline of next June. Keystone has been successful in fund-raising 5 billion yen in dry powder so far from pension funds etc.

Deutsche Bank To Invest In Turnaround Fund

Deutsche Bank AG, Tokyo Branch announced its commitment to invest in a business revitalization fund to be initiated by Japan Industrial Solutions Co., Ltd (JIS). Established by DBJ, SMBC, BTMU and Mitsubishi Corp., JIS was founded on September 29 to manage funds aimed at revitalizing businesses; Deutsche Bank's Tokyo Branch will be a limited partner and capital participant in the planned fund through its Strategic Investment Group.

Japan's Q3 GDP UP 3.9%

The government announced that real gross domestic product increased 3.9% in annualized terms in the July-September period, up from a revised 1.8% growth in April-June. The average consensus was around 2.5%. Strong GDP growth was driven by consumer spending. Households stepped up purchases of fuel-efficient vehicles before government subsidies ended in September. Smokers also stocked up on tobacco before taxes were increased on Oct 1. Economists say the economy could have slowed in the third quarter if the one-off factors bolstering household spending were stripped out. They add that the current fourth quarter is likely to be impacted by a stronger yen, which will lead to a slowdown in exports.

AP To Acquire Guam Tele-com Servicer

Advantage Partners LLP, a Tokyo-based private equity firm, announced that an investment vehicle served by AP will acquire GTA TeleGuam, the leading provider of communications service in Guam from Shamrock Capital Advisors. Shamrock Capital Advisors, a California-based private equity firm, has been a co-owner with GE since the privatization of GTA in 2005.

Sumitomo Tr. To Beef Up Asset Mgt. Business

Sumitomo Trust & Banking Co., an independent trust bank and its subsidiary Nikko Asset Management Co., are in the final stages of acquiring two foreign asset management companies, according to Nikkei. They are Tyndall Investment Management Ltd., a subsidiary of a major Australian financial group and DBS Asset Management Ltd., a subsidiary of Singapore's largest bank, DBS Bank. Sumitomo Group will likely spend up to 10 billion yen to purchase the two subsidiaries.

Mizuho To Acquire Stake In BlackRock

Mizuho Financial Group Inc., one of mega banks, will spend $500 million to take a roughly 2% interest in US asset management giant BlackRock Inc., according to Nikkei. Mizuho will market BlackRock's financial products to Japanese individuals and businesses.

JAIC and CyberAgent To Launch 2nd China-focused Fund

JAIC, a listed Asia-focused VC firm, and CyberAgent, Inc. an internet service company, announced that Japan Asia Investment (China) Co., Ltd, an affiliate of JAIC and Cyber Agent Ventures, Inc. an investment affiliate of CyberAgent, jointly set up a China-focused fund "CA-JAIC China Internet Fund Ⅱ". The fund will start with $15 million to invest in promising Chinese venture capital companies.

Combi To Go Private Via MBO

Combi Corporation, a leading baby-goods manufacturer, announced that Combi approved the tender offer by an investment firm set up by the founding family. The investment firm is launching a tender offer at 1000 yen per share with the total purchase price estimated at 12.2 billion yen. Nomura Capital Investment Co. plans to offer more than 10 billion yen in financing.

Avon To Sell Japan Unit To TPG

Avon Products, Inc. announced that it has agreed to tender its 74.67% share in its Avon Japan business to an affiliate of TPG Capital, a global private equity firm. Under the terms of agreement, TPG will make a cash payment of 7.3 billion yen ($90 million) for Avon's stake and for pre-paid royalties. As part of the transaction, TPG is launching a tender offer in Japan for all outstanding shares of Avon Japan at 74 yen per share. Avon Japan is the only subsidiary in Avon's geographic portfolio that is publicly traded. Avon will focus its business and investment on higher growth opportunity locations like China.

INCJ To Invest In Power Semicon Maker

Innovation Network Corporation of Japan, private-public investment fund, announced that INCJ will underwrite new shares issued by Nihon Inter Electronics Corporation, a listed staggering manufacturer of discrete semiconductors and power module products, for 3.5 billion yen. INCJ will also provide management support through introducing new talents from outside. With this investment as a starting point, INCJ plans to aim for a reorganization of the power-modules market.