Nomura looks to sell stake in venture capital firm Jafco (updated)

JAFCO Co

28/07/2017 02:27

* Nomura tenders 8.48 mln shares in Jafco 
    * Jafco to buy up to 14 mln shares 
    * Jafco tenders 5 mln shares in Nomura Research Institute 
    * Jafco shares rise to highest since Oct 2015 
 
 (Adds total value of share buyback, Jafco's plan to sell shares 
in Nomura Research Institute, Jafco share move on Friday) 
    By Thomas Wilson 
    TOKYO, July 28 (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, at 4,560 yen per 
share. Nomura Research Institute Ltd  4307.T  will also tender 
to sell 4.95 million shares, Jafco said. 
    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.  
    Jafco said it would buy up to 14 million shares from the two 
tenders for up to 63.8 billion yen ($574.7 million).  
    In a separate statement, Jafco said it would tender 5 
million shares in Nomura Research Institute, adding that if it 
sells all the shares it plans to book a gain of 18.4 billion yen 
($165.8 million) in the July-September period.  
    Jafco's shares rose over 15 percent in early morning trade 
on Friday to 5,260 yen, their highest since October 2015. The 
benchmark Nikkei  .N225  average fell 0.6 percent. 
    Nomura said the deal will "contribute to Nomura's drive to 
enhance capital efficiency and optimally allocate its management 
resources." 
    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) 
 
($1 = 111.0200 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/