Tokyo: Goldman Sachs will sell its $446 million stake in Accordia Golf, exiting from its investment in the Japanese golf course operator that it took public in 2006.
Accordia said in a statement on Thursday that Goldman would sell to the public its 44.7% stake, which would be worth ¥37 billion ($446 million) at the current market price.
Goldman bought a string of golf courses in Japan following the burst of the country’s economic bubble in the early 1990s, when many golf courses went bust after real estate prices collapsed.
US private equity fund Lone Star was another aggressive buyer of Japanese golf courses and formed Pacific Golf Group International, which also operates golf courses in Japan.
Goldman and Lone Star made profits by taking their golf course management companies public, but both Accordia and Pacific Golf have struggled to boost their stock prices as Japan’s economic slowdown discouraged golfers from playing.
Accordia shares closed at ¥78,900 on Thursday, 60% lower than the historical high they marked after making their market debut in November 2006.
Still, they have been regaining some momentum recently, having risen 14.5% since hitting last year’s low in October.
Pacific Golf shares closed at ¥55,000 on Thursday, far below their historical high of ¥301,000 marked in January 2006.
Daiwa Securities Capital Markets and Goldman Sachs are handling the sale of Accordia shares, Accordia said.