CCMP Joins Unison for Daito Trust Buyout

TOKYO (Reuters) – CCMP Capital has joined a group led by Japan’s Unison Capital that aims to buy out Daito Trust Construction Co (1878.T), filling gaps left by other funds that have reduced their involvement, financial sources said.

Unison will take the reins from U.S. investment firm Aetos Capital on the deal, seeking a majority holding in the apartment builder, which has a market value of around $5.2 billion, the sources added.

Daito’s stock jumped 11 percent on news that Unison would take the lead, which was first reported by the Wall Street Journal.

Private equity firm CCMP was formed in 2006, in a spin-off from JPMorgan Chase & Co (JPM.N).

Aetos Capital and investor Mori Trust Co have cut their commitment to the Daito deal to similar levels but have not withdrawn completely, according to the sources, who declined to be identified as the information is not yet public.

Daito’s founder and chairman, Katsumi Tada, has been looking to sell his stake of roughly 30 percent, and the Unison-led group outbid Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and others earlier this year to obtain first negotiating rights.

The Unison led-group also aims to acquire the rest of Daito’s outstanding stock to take it private.

Daito, which is also a real estate agency, in July reported a net loss of 3.7 billion yen for the three months ended June 30, against a 1.1 billion yen net loss a year ago. The company expects its annual net profit will fall 7.6 percent to 41.1 billion yen from a year ago.

Unison Capital, established in 1998, was one of the first private equity firms in Japan.

Unison said this month it was aiming to raise 200 billion yen for its latest fund by the end of this year. The fund obtained 90 billion yen in commitments as of Aug 8.

Private equity firms have spent $8.7 billion in buying Japanese companies since the beginning of this year, down 19 percent from the same period last year, Thomson Reuters data shows.

Daito’s stock ended up by its daily limit at 5,000 yen, compared to a 2.5 percent decline for the Topix index .

By Junko Fujita
(Editing by Edwina Gibbs)

($1=107.47 Yen)