UPDATE 1-U.S. firm gains control of DaVinci Holdings – Nikkei

July 9 (BestGrowthStock) – Fortress Investment Group LLC (FIG.N: )
has purchased about 20.5 billion yen ($232 million) in loans
made to DaVinci Holdings KK as well as equity warrants in the
fund from BNP Paribas SA (BNPP.PA: ), the Nikkei business daily
said.

The equity warrants enable the U.S. investment fund to
obtain 32 percent of the voting rights in DaVinci and an option
to buy shares from the firm’s former president, Osamu Kaneko,
which would give it an additional 27 percent voting rights, the
paper said.

DaVinci Holdings fell into negative net worth in the year
ended December 2009, and its stock was delisted from the Osaka
Securities Exchange’s Hercules start-up market last month, the
daily said. Kaneko stepped down as company president on June
25, it added.

Fortress Investment, which is poised to gain a controlling
stake in DaVinci, has given the Japanese real estate fund a
two-year extension on loan repayments to help its
rehabilitation, the Nikkei said.

Fortress Investment, which is 15 percent owned by Nomura
Holdings Inc (8604.T: ), believes the Japanese real estate prices
have reached a reasonable level, the paper said.

To take advantage of the situation, the U.S. firm
established a fund last month, using roughly 80 billion yen in
seed money raised from domestic pension funds and others, it
added.
($1=88.37 Yen)
(Reporting by Gowri Jayakumar in Bangalore; Editing by Vyas
Mohan)

UPDATE 1-U.S. firm gains control of DaVinci Holdings – Nikkei