Lone Star set to quit Japan golf business
Thursday, 27 October 2011
TOKYO, Oct 26 (Reuters): US private equity firm Lone Star will sell its entire stake in PGM Holdings, one of Japan's largest golf course operators, for 39.5 billion yen ($521 million) as it seeks to exit one of its largest investments in distressed assets in Japan.
Lone Star has agreed to sell its 64 per cent stake to Japanese "pachinko" pinball machine maker Heiwa Corp, the manufacturer said. Heiwa will offer 52,000 yen per share for PGM Holdings, a 30-per cent premium Wednesday's closing price of 39,850 yen.
Heiwa will launch a tender offer to also buy shares from other shareholders but it plans to keep PGM, which Lone Star took public in 2005, as a listed company, Heiwa chief executive Yasuhiko Ishibashi said at a media briefing.