TPG among bidders to buy Japan’s Anabuki-sources

TOKYO, May 24 (BestGrowthStock) – TPG Capital and Advantage Partners
are among the final bidders left in the competition to buy
Anabuki Construction Inc, a Japanese apartment developer that
failed last year with about $1.6 billion in debt, two sources
with knowledge of the deal said.

Anabuki, based on the southern Japanese island of Shikoku,
announced in February that it had hired Nikko Cordial Securities
to find an investor to buy the company and help it rebuild its
operations. [ID:nTKX006671]

The bidders are willing to pay more than 20 billion yen ($222
million) in equity and debt to buy Anabuki but the deal size
could reach 100 billion yen if Anabuki, as is being discussed,
significantly cuts its debt, one of the sources said.

The second round of bidding closed on May 14, both sources
said and the winner is expected to be chosen by the end of this
month.

Both sources spoke on condition of anonymity because the
bidding process is not public. Anabuki declined to comment.

CarVal Investors, an investment firm set up by agribusiness
giant Cargill Inc [CARG.UL], is also among the bidders, the
sources said.

Japanese apartment developer Daikyo Inc (8840.T: ) has launched
a joint bid with investment fund J-Will Partners Co, one of the
sources said.

Nikko Cordial, TPG and Advantage Partners all declined to
comment. CarVal could not be reached for comment, while Daikyo
said it could not immediately comment.

Anabuki, hit hard by the slump in Japan’s property market,
filed for bankruptcy in November with 139 billion yen in
liabilities, making it the country’s sixth-largest corporate
failure last year, according to Tokyo Shoko Research.

Anabuki ranked as Japan’s third-largest condominium developer
in 2007 behind Daikyo and industry leader Mitsui Fudosan
(8801.T: ), according to the Real Estate Economic Institute, a
research firm.

Investing Research

(Reporting by Junko Fujita)

TPG among bidders to buy Japan’s Anabuki-sources