Nomura looks to sell stake in venture capital firm Jafco
27/07/2017 10:42
TOKYO, July 27 (Reuters) - Nomura Holdings Inc 8604.T said
on Thursday it would tender to sell its shares in Jafco Co
8595.T through a share buyback with the venture capital firm,
as the brokerage looks to deploy its capital more efficiently.
Nomura, Japan's largest brokerage and investment bank, said
in a statement it would put its 8.48 million shares, or 17.6
percent stake, in Jafco up for sale on Friday. Jafco plans to
buy back the shares, and another 4.98 million tendered by Nomura
Research Institute Ltd 4307.T , at 4,560 yen per share.
If all the tendered shares are sold, the deal will generate
for Nomura a pretax profit of around 9 billion yen ($80.94
million), to be booked in the July-September period.
The deal will "contribute to Nomura's drive to enhance
capital efficiency and optimally allocate its management
resources," Nomura said in a statement.
Nomura has shown willingness to consider selling stakes in
its non-core businesses, and told investors in May it would look
to improve capital efficency and invest surplus capital in
growth areas. The brokerage is currently expanding its U.S.
investment banking business.
In May, the brokerage started unofficial talks with Japan
Post Holdings Co 6178.T over the sale of a stake in Nomura
Real Estate Holdings 3231.T , a source told Reuters.
However, the deal broke down in June, after Nomura Real
Estate said Japan Post was no longer considering a plan to buy a
stake. urn:newsml:reuters.com:*:nT9N1IB026
($1 = 111.1900 yen)
(Reporting by Thomas Wilson; Editing by Jacqueline Wong)
((T.Wilson@thomsonreuters.com; 81-3-6441-1598; Reuters
Messaging: t.wilson.thomsonreuters.com@reuters.net))
Keywords: NOMURA JAFCO/