Nikko Principal Investment Australia agrees to first acquisition

Nikko Principal Investments Australia is acquiring a vehicle leasing business in its first transaction since the private equity arm of Nikko Cordial, a Japanese financial group, was set up in May.

Nikko Principal Investments Australia, the private equity arm of Nikko Cordial Corporation, Japanese investment bank, securities and asset management firm, has agreed to acquire FleetPartners, a vehicle leasing and management business, from Australian and New Zealand Banking Group.

The agreed sale price is A$379 million ($290m; €226m), according to a spokesman.

The transaction is Nikko’s first since it launched its private equity business in Australia in May. The acquisition is expected to be completed on 31 October, and subject to Foreign Investment Review Board’s and New Zealand Overseas Investment Office’s approvals.

The acquisition will be funded using Nikko Cordial’s balance sheet, Gene Lorenz, managing director of Nikko Principal Investment Australia said.

Macquarie Bank advised Nikko and arranged the debt financing for the transaction.
Nikko Principal Investment Australia extends Nikko’s private equity reach beyond Japan and Europe. The Australian initiative will soon extend to India.