Goldman Sachs To Sell Teibow

TOKYO (Reuters) – 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)

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