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Daiei selling hotels to Goldman
TOKYO, Japan -- Troubled supermarket chain Daiei Inc. is selling four hotels to U.S. investment bank Goldman Sachs, according to a report. The sale will raise around 50 billion yen ($424 million), the Nihon Keizai Shimbun reported Wednesday. Daiei is also considering selling three other hotels, a move that would see it exit city hotels altogether. Daiei is trying to cut its total debt load of 1.2 trillion yen ($10.2 billion) to around 900 billion yen by the end of the 2004 business year. It has been selling off subsidiaries and non-core businesses since it received a $4 billion bailout in February last year. In another high-profile financial rescue, department store Seibu is now considering seeking financial help from the state-backed Industrial Revitalization Corp. as part of its restructuring, the largest since Daiei's bailout. (Full story) Seven hotels consideredDaiei is selling its stakes in the Hotel Centraza Hakata in Fukuoka city, the Kobe Meriken Park Oriental Hotel in Kobe, the Namba Oriental Hotel in Osaka and the Shin-Urayasu Oriental Hotel, in Chiba prefecture, the Nikkei states. It is also considering selling its Seahawk Hotel & Resort and the Fukuoka Dome baseball stadium that sits next to it, as well as the Kobe Seishin Oriental Hotel and Shinkobe Oriental Hotel in Kobe. They are the last of its city hotels, a business it entered in the 1980s. Goldman and Daiei originally held talks on the sale of all seven hotels back in the spring of 2000 but the talks fell through over the price. Goldman has been snapping up debt-heavy, distressed businesses from Japanese companies as they look to restructure, and has already become Japan's largest golf-course operator. (Full story) Daiei shares were up 0.79 percent at 128 yen at the lunch break on Wednesday, outperforming a 0.17 percent rise in the broad Topix index.
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