The Wall Street Journal-20080111-Orix Corp-- President Says Extra Funds Will Be Invested Overseas
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Orix Corp.: President Says Extra Funds Will Be Invested Overseas
Orix Corp. is drawing up a list of overseas companies it would like to buy, unfazed by the mortgage crisis that slashed nearly 50% off its share price over the past six months as it sits on a pile of cash totaling around 200 billion yen, or $1.8 billion. Yukio Yanase, the new president of Tokyo-based Orix, one of Japan's biggest financial- services businesses, with a market capitalization of nearly 1.6 trillion yen, said he is scouring emerging markets in Asia and the Middle East for investment opportunities. Mr. Yanase, who is also chief operating officer, didn't rule out developed markets, such as the United Kingdom. Mr. Yanase, who began serving as president Jan. 1, said he wants to increase the proportion of business Orix does outside Japan well above the current 25%. He didn't say which companies Orix is looking at, noting only that it is looking at "a wide range of [target] sizes." The search for takeover targets comes as Orix shares have fallen 47% since July. Mr. Yanase blamed subprime woes for the fall in Orix shares.
