Cerberus sells off stake in Seibu Holdings

Cerberus sells off stake in Seibu Holdings

Seibu Holdings Inc. has disclosed that U.S. investment firm Cerberus has sold its entire stake in the major railway and hotel operator.

Cerberus invested in the company when the Seibu Railway Co. group was reorganized into Seibu Holdings in 2006, after the railway was delisted from the Tokyo Stock Exchange in December 2004 for securities fraud.

With an equity stake of more than 35 percent, it was once the top shareholder of Seibu Holdings until it began lowering its stake in stages before its complete exit 11½ years afterward. Cerberus’ stake in Seibu Holdings stood at 2.35 percent as of April.

In 2013, Cerberus crossed swords with Seibu Holdings’ management mainly over the public offering price for its return to the TSE.

Cerberus then hikes its stake in Seibu Holdings to more than 35 percent through a tender offer and made a proposal on executive appointments at its general shareholder meeting just after the move. But the proposal was voted down.

The U.S. firm later softened its stance and gradually sold its holdings after the company’s shares were relisted on the TSE’s first section in April 2014.

Seibu Holdings President Takashi Goto said in a statement Wednesday that the company is grateful for the 11½ years of support it received from Cerberus, though tensions between the two sides increased temporarily.