Waren Buffet to acquire Tungaloy Corp from Nomura subsidiary
23 Sep 2008
Japan's Nomura Principal Finance Co., Ltd, a wholly-owned subsidiary of Nomura Holdings, Inc, today said that it had signed an agreement with IMC International Metalworking Companies BV to sell its remaining 71.2-per cent stake in Tungaloy Corporation, said to be valued at around $1 billion.
IMC International Metalworking is Berkshire Hathaway portfolio company, which owns an an 80-per cent stake in it.
Nomura first invested in Tungaloy over four years ago as part of a management buyout to take Tungaloy private and restructure the firm's operations and position it for future growth through capital investment. It subsequently sold 19.18-per cent of its Tungaloy stake in July 2006.
With a paid up capital of ¥8 billion yen ($75 million), Tungaloy, which makes sintered products, cemented carbide tools, and ceramic products, has global perations spanning 60 countries and posted profits of ¥6.6 billion on sales of ¥50 billion in its financial year ended 31 March 2008.
Nomura Principal was established in July 2000 to explore principal finance opportunities in Japan using the expertise acquired by Nomura in investing its own capital in international markets.
Nomura Principal invests in businesses with stable cash flow, future growth prospects, and improving performance, as well as in assets that may be securitized later on. NPF focuses on adding value to businesses in order to realize long–term return on investments, exiting via initial public offerings and other methods.
