Nomura to Sell Stake in Tungaloy
Tokyo, September 22, 2008 – Nomura Principal Finance Co., Ltd. (NPF), a wholly-owned subsidiary of Nomura Holdings, Inc., today announced that it has signed an agreement with IMC International Metalworking Companies B.V. to sell its remaining stake in Tungaloy Corporation.
NPF first invested in Tungaloy over four years ago as part of a management buyout to take Tungaloy private in order to restructure the firm’s operations and position it for future growth through capital investment. NPF subsequently sold 19.18% of its Tungaloy stake in July 2006.
Established in 1950, Tungaloy manufactures and markets sintered products, cemented carbide tools, and ceramic products. With paid-in capital of 8 billion yen, Tungaloy recorded net sales of 50 billion yen and ordinary profit of 6.6 billion yen in the fiscal year ended March 31, 2008.
NPF 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. NPF 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.
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 18,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through five business divisions: domestic retail, global markets, global investment banking, global merchant banking, and asset management. For further information about Nomura, please visit www.nomura.com.
