Cerberus-Backed Seibu Said to Seek Tokyo Stock Trading

Seibu Holdings Inc., a Japanese hotel and rail operator part-owned by Cerberus Capital Management LP, plans to list on the Tokyo Stock Exchange as early as April, said three people familiar with the matter.

Tokorozawa City, Japan-based Seibu will submit an application with the bourse as soon as today, said the people, asking not to be identified because the information is private. The company may not raise any money as part of the move, one person said.

The listing plan follows a tussle last year over management between Seibu executives and Cerberus, which holds a 35.5 percent stake in the company. Its predecessor company Seibu Railway Co. was delisted from the Tokyo exchange in 2004 after it was found to have compiled a financial report that contained falsified data.

Ryuichiro Nishiyama, a spokesman for Seibu, declined to comment.

The Asahi newspaper reported on Jan. 12 that Seibu plans to list as early as March 31, without citing the source of its information. The company operates 50 hotels in Japan and abroad, including the Hawaii Prince Hotel Waikiki, as well as commuter rails in the Tokyo metropolitan area.

Cerberus failed in its bid to have eight directors elected to Seibu’s board at its annual general meeting in June. The U.S. buyout firm recommended people including former U.S. Vice President Dan Quayle and former U.S. Treasury Secretary John Snow to the board.

Seibu’s net income surged 30 percent in the six months ended Sept. 30 to 13.4 billion yen ($128 million) from a year earlier, on revenue of 232 billion yen, according to a Nov. 14 statement from the company. It forecast a 35 percent increase in profit for the year ending March 31, to 21 billion yen.

The company is developing projects including a hotel, a residential complex and a shopping mall in the Japanese capital and surrounding areas ahead of the 2020 Tokyo Olympics Games, according to its website.

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