UPDATE 1-Goldman Sachs to sell Japan’s Teibow-sources

* 86 pct stake could fetch around $113 million

* Advantage Partners, CITIC Capital among bidders

* Mizuho Securities advising on sale

(Adds background, comments)

By Junko Fujita and Wakako Sato

TOKYO, July 14 (BestGrowthStock) – Goldman Sachs (GS.N: ) is planning
to sell its stake in Japan’s Teibow Co, a maker of felt pen
nibs, in a deal that could be worth about 10 billion yen ($113
million), according to five people with direct knowledge of the
matter.

Goldman bought an 86 percent stake in Teibow, a
Shizuoka-based company which also has an office in Shanghai, in
2006, when the private equity market peaked in Japan, for an
undisclosed amount.

Goldman is among a number of firms trying to sell
investments they made around that time, with some struggling to
find buyers.

A spokeswoman in Tokyo for Goldman Sachs declined to
comment.

Japanese private equity firms Advantage Partners, Wise
Partners and Polaris Principal Finance, as well CITIC Capital
Partners, which is backed by the Chinese government, are bidding
for Teibow, the sources said, asking not to be identified
because the process is not public.

The deal emerges as Daiwa SMBC Capital is looking for a
buyer for vegetable juice maker Q’sai Co and as CVC Capital
Partners tries to sell shoe repair chain Minit Asia Pacific Co.
[ID:nTFA006628] [ID:nTKX006709]

“These investments that were made in 2006 and 2007 are
certainly are not having an easy time getting sales as the stock
market is still in the doldrums,” said Rita Springett, president
of consulting firm Delfino Capital’s Tokyo office.

“And obviously depending on the deals some of them were
evidently bought at quite steep prices.”

Mizuho Securities (8606.T: ) is acting as an adviser on the
Teibow sale, the sources said.
(Reporting by Junko Fujita and Wakako Sato; Editing by Joseph
Radford)

UPDATE 1-Goldman Sachs to sell Japan’s Teibow-sources