Government to Release Up to 990 Million Extra Japan Post Shares (News)
Tokyo, Sept. 11 (Jiji Press)—The Japanese government will additionally sell up to 990,099,100 shares in Japan Post Holdings Co., or 22% of the company's outstanding shares, the Finance Ministry said Monday.
Proceeds from the sale are expected to total ¥1.3 trillion. The company's stock finished at ¥1,321 on the Tokyo Stock Exchange's first section on Monday.
The government plans to spend the proceeds on reconstruction measures following the March 2011 massive earthquake and tsunami that hit the Tōhoku region.
The selling price will be determined on September 25–27, following a so-called book-building process to assess demand, with the share sale seen taking place on September 29–October 3, the ministry said.
Japan Post Holdings decided on Monday to spend up to ¥100 billion to buy back up to 100 million shares, to alleviate the impact of the new sale on the market.[Copyright The Jiji Press, Ltd.]