Nojima to Become Scandal-Hit Suruga Bank's Top Shareholder

Economy

Tokyo, Oct. 25 (Jiji Press)--Japanese home electronics retailer Nojima Corp. <7419> said Friday that it will become the top shareholder of scandal-tainted Suruga Bank <8358> by acquiring the shares owned by its founding family.

Nojima will purchase the Suruga Bank shares, which represent a stake of 13.52 pct in terms of voting rights, for about 14.1 billion yen, boosting its voting-rights stake to 18.52 pct. The purchase will be carried out on Tuesday.

The move comes as the Numazu, Shizuoka Prefecture-based regional bank aims to reinvent itself after severing ties with the founding family, believed to have been the root cause of dubious lending operations for real estate investment.

The founding family agreed on Friday to repay all loans from the bank by the end of the current fiscal year. Shady loans from the bank to the family and family-related companies are believed to have totaled 48.8 billion yen.

The Financial Services Agency issued a business suspension order to Suruga Bank in October 2018, pointing to poor corporate governance under the founding family.

[Copyright The Jiji Press, Ltd.]

Jiji Press