Elliott Management, a US-based fund management firm, has agreed to buy Premier Asset Management (PAM), the Japanese loan servicing unit of Capmark Financial Group (CFG), for JPY3.4 billion, reported Reuters citing US court documents.
Reportedly, CFG had filed for bankruptcy in the US Bankruptcy Court for the district of Delaware in October this year, after becoming one of the victims of the commercial real estate crisis. Since then, it has been selling assets including its US loan servicing unit.
US bankruptcy law enables sellers to find a highest possible bid, which had allowed others to enter the bid in Japan despite Sandringham’s earlier agreement to acquire Premier.
Elliott outbid Orix, Sandringham Capital Partners, Capital Services Group and others to buy PAM. The final bid price of both Elliott and Sandringham are reported to be the same, however, the former’s stronger financial guarantees for the purchase tilted the deal in its favour, reported the news agency.
