TPG, J Trust Said to Plan Second Round of Offers to Invest in Takefuji

TPG Capital and J Trust Co. plan to enter a second round of bidding to invest in bankrupt Japanese consumer lender Takefuji Corp., two people with knowledge of the matter said.

TPG, the private equity firm run by David Bonderman, and J Trust, a Japanese financial company, are studying Takefuji’s finances and expect to submit separate bids in February, the people said, declining to be identified because discussions are private.

Takefuji filed for bankruptcy protection in September with 433.6 billion yen ($5.2 billion) in liabilities, becoming Japan’s biggest casualty of a four-year crackdown on coercive lending to consumers. In addition to TPG and J Trust, Seoul- based A&P Financial Co., Tokyo Star Bank Ltd. and Cerberus Capital Management LP are also among bidders, according to a Nikkei newspaper report published today.

Jochen Legewie, a Tokyo-based spokesman working for TPG, declined to comment, as did Kazuo Yamamoto, a spokesman for Kyoto-based J Trust. Takefuji officials didn’t respond to phone calls seeking comment.

TPG, based in Fort Worth, Texas, in 2008 invested in NIS Group Co., a Japanese consumer loans company. J Trust last year acquired failed Lopro Corp., a consumer and corporate lender.

Court-appointed administrators have hired Shinsei Bank Ltd. to select a so-called financial sponsor to rehabilitate Takefuji and will decide on a winning bid by March, Eiichi Obata, a lawyer appointed to oversee the restructuring, said Oct. 31.

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net.

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net.

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