The deadline for final bids in the sale of failed Japanese consumer lender Takefuji Corp. has been put on hold because of last week’s earthquake. The deadline, originally March 22, has been moved to March 31, Reuters said. Private equity firms Cerberus Capital Management and TPG, as well as Japanese lenders Tokyo Star Bank and J Trust Co., and Korea’s A&P Financial have reportedly all advanced to the final round of bidding.
(Reuters) – The final bidding deadline for the sale of failed Japanese consumer lender Takefuji Corp has been pushed back to March 31 from March 22 after last week’s massive earthquake rattled financial markets.
“Considering the impact of the latest earthquake, we have decided to delay the deadline,” Takefuji said in a statement on Friday.
Takefuji failed in September owing 433 billion yen ($5.5 billion) after its profitability was squeezed by a 2006 court ruling forcing it and other consumer lenders to repay overcharged interest and a government cap on lending rates.
This is the second time that the deadline has been moved back. The earlier deadline of March 10 was delayed because Takefuji’s court appointed administrator wanted to give more time to bidders to gauge the lender’s value.
Sources have told Reuters that private equity firms Cerberus Capital Management and TPG , Japanese lenders Tokyo Star Bank and J Trust Co , and Korea’s A&P Financial had advanced to the final round of bidding.
Already a slew of deals in Asia are in danger of being delayed or cancelled as investors turn jittery after Japan’s deadly earthquake and nuclear crisis.
Chemicals and pharmaceuticals firm Kyowa Hakko Kirin said on Tuesday that it would postpone the sale of a subsidiary as it assesses the impact of the quake. ($1 = 78.855 Japanese Yen) (Reporting by Junko Fujita; Editing by Nathan Layne)