Ripplewood Deal Blazes a Trail in Japan
These guys are kicking ass and taking names. I look forward to their next acquisition.
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gkanai wrote:Ripplewood Deal Blazes a Trail in Japan
These guys are kicking ass and taking names. I look forward to their next acquisition.
"]Ripplewood Deal Blazes a Trail in Japan
...Now that Ripplewood has a foothold in telecommunications, some suspect it might buy stakes in smaller companies to help it compete with NTT, which controls about 90 percent of the local phone market in Japan. Mr. Hendren did not rule out acquiring other companies, but said there were no plans afoot.
Two candidates stand out. Crosswave Communications Inc., a venture between Sony, Toyota Motor and Internet Initiative Japan, provides high-speed data communications services. On Wednesday, the company filed for protection from creditors, who are owed 68.4 billon yen ($579 million).
Internet Initiative Japan may also be for sale. The Nihon Keizai newspaper reported today that NTT may buy a 30 percent stake in the company for as much as 20 billion yen ($169 million).
gkanai wrote:Totally ballsy. Like how Ripplewood paid $150M for the Seagaia resort when the original investors spent $2.3B to build it (that's around 15%!)
gkanai wrote:Totally ballsy... Ripplewood ....
May 25 (Bloomberg) -- Softbank Corp., Japan's second-largest provider of high-speed Internet service, said it's in talks to acquire a majority stake in Japan Telecom Co. from Ripplewood Holdings LLC.
Mulboyne wrote:If that is correct (and it could well be wrong) then a 100 billion price tag for a majority stake in a deal which cost 261 billion suggests a small initial writedown for Ripplewood ....Seagaia, however, is a turkey...
Ripplewood acquired Japan Telecom from its main stakeholder, Vodafone Group PLC of Britain, for 260 billion yen in November. The U.S. investment fund appointed the former vice president of IBM Japan Ltd. as president of the fixed-line carrier with a brief to restore profitability. But the expected revitalization was not realized, prompting Ripplewood to look for a business partner, according to industry sources.
Mulboyne wrote:If Ripplewood have tripped up, they are doing exactly what they should do. No point in just hoping things get better, take some cash off the table. .
Mulboyne wrote:The foreign press is gung ho about Ripplewood because it is one of the few names that let journalists here get bylines outside their normal "Asia/Pacific" prison. Don't expect them to look at the kessan tanshin!
Taro Toporific wrote: I remember being ripped a new a-hole for trying to dig deeper kessan-tanshin long, long ago when I was working freelance at nights for Jardine-Fleming (aka Jardine's aka "Nobel House" of the Opium War). The Japanese director of Jardine-Fleming told me my services were no longer needed for, "trying to analyze 'manga'
Details of the transaction
The enterprise value of Japan Telecom is expected to be approximately 262 billion yen in early October 2003. As a result of the transaction, JAPAN TELECOM HOLDINGS will receive 261.3 billion yen as follows:
- 228.8 billion of cash]
Debt financing arranged byMandated Lead ArrangersABN AMRO BANK N.V., TOKYO BRANCH; THE BANK OF TOKYO-MITSUBISHI, LTD; CITIBANK, N.A;CREDIT LYONNAIS, TOKYO BRANCH;
ING BANK NV, TOKYO BRANCH; JP MORGAN SECURITIES ASIA PTE. LIMITED; MIZUHO CORPORATE BANK, LTD.; SUMITOMO MITSUI BANKING CORPORATION; THE NORINCHUKIN BANK; UFJ BANK LIMITED;
WESTLB AG;
So it is a little odd to see Bloomberg sayingThe New York-based fund, headed by former Lazard Freres & Co. banker Timothy Collins, led a group of investors including Goldman Sachs Group Inc. that paid 32.5 billion yen for Japan Telecom's common shares last November. Softbank will pay 143.3 billion yen for the stock, completing the purchase on Nov. 16.
since the 32.5 billion refers to the redeemable preferred equity and in no way represents the price paid for the common shares. Softbank buys these preferreds and the common and, it seems, assumes 164 yen billion in debt. It is also a bit disingenuous to look purely at the stock transaction and not the debt.
I think I'll sell shares in myself for 10 yen to someone who can then pay off my crippling mortgage and sell me on for 20 yen and "make a 100% return"
I liked this quotationOverall, it was "a very good investment for Ripplewood," the company's chief executive, Timothy C. Collins, said, though he declined to elaborate on precisely how much his investors made.
MIYAZAKI — Phoenix Resort KK, the operator of the Seagaia amusement park in Miyazaki Prefecture, probably suffered a net loss of 2.2 billion yen in fiscal 2004 through March 31, sources familiar with the earnings said Monday.
The loss was 1.3 billion yen smaller than the previous business year but the resort operator's cumulative loss swelled to 12 billion yen, the sources said. (Kyodo News)
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