Private equity firm Texas Pacific Group has acquired a 14.07 per
cent stake in Tomy becoming the firm's second-largest shareholder. Under the agreement, TPG will purchase 7 billion yen ($60 million) in
convertible bonds with share warrants that Tomy will issue to TPG
through a third-party allocation.
TPG,
which has about $30 billion of assets under management, will also
acquire 10.96 percent of Tomy shares held by the investment firm T2
Fund.
In addition, it will also acquire 1.97 percent of Tomy
shares held by the firm as treasury stock and another 1.13 percent of
outstanding shares from the company's subsidiaries.
A TPG
spokesman declined to comment on the total investment amount, but the
14.07 percent stake would be worth close to $90 million at Tuesday's
closing share price of 768 yen.
"Tomy is well positioned as
Japan's number two toy maker and has huge potential for further growth,
especially overseas," Jun Tsusaka, head of TPG's Japanese operations,
said in a statement.
"Combining both partners' strengths will
allow Tomy, already one of Japan's major toy makers, to further develop
into a leading global toy maker," said Kantaro Tomiyama, president of
Tomy.
Thanks to Toy News Magazine for the article
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