off-the-wire

UPDATE 1-Japan Post Holdings to sell down stake in Japan Post Bank in $9 bln deal

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details, background) TOKYO, Feb 27 (Reuters) - Japan Post Holdings will sell down its stake in Japan Post Bank to under 65% from the current 89%, it said on Monday, in a deal that could be worth about 1.26 trillion yen ($9.25 billion). Announcing the secondary offering, Japan Post Bank said its parent would sell about 975 million shares globally, including a greenshoe option of 28.4 million shares overseas.


With an overallotment of an additional 113.6 million shares in the domestic market, the sale could exceed 1 billion shares, which would reduce Japan Post Holdings' stake in the banking arm to 60%. Along with separately announced share buybacks and retirement of treasury shares, Japan Post Bank said it would meet the Tokyo Stock Exchange's requirements on share liquidity and help clear the way to stay listed on the top section of the bourse.


The stake sale was first reported by Reuters last week. Japan Post Bank said it would buy back up to 4.5%, or 150 billion yen worth of its own shares and cancel them.


Under rules introduced last year, companies on the Tokyo Stock Exchange's Prime Market need to keep a tradable share ratio of 35% or more. ($1 = 136.2800 yen) (Reporting by Eimi Yamamitsu and Mariko Katsumura Editing by Chang-Ran Kim)

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