Goldman Sachs said on Friday it plans to bid for all shares in Tokyo-based property investor Simplex Investment Advisors, valuing it at 156.95 billion yen ($1.35 billion).
Goldman is offering 215,000 yen per Simplex share, a 65% premium over Simplex's closing price on Thursday of 130,000 yen, before Reuters reported news of the deal.
Nikko Cordial, Simplex's top shareholder, said it agreed to Goldman's offer. Nikko Cordial and its affiliates own 42.5% of Simplex.
Goldman said it planned to spend 124.7 billion yen on the bid, which will run from Oct. 12 to Nov. 8.
Nikko Cordial said it expected to post a special profit of 44 billion yen in the business year to March 2008 on the share sale.
Shares of Simplex rose on Friday to 150,000 yen, up the daily limit of 20,000 yen or 15.4%, after Reuters reported late on Thursday that Yoshihiro Mikami, a major shareholder in Simplex and a former Salomon Brothers bond trader, was looking to sell his 29% stake.
On Friday afternoon, sources told Reuters that Goldman planned to launch a takeover bid for Simplex. The Tokyo Stock Exchange then suspended trade in the issue.
Simplex has three main business segments: asset management of real estate funds in Japan, property development and property marketing.