Japan Post Urged to Show Road Map to Sell Out Financial Unit Shares
Tokyo, April 22 (Jiji Press)--A Japanese government panel on Thursday urged Japan Post Holdings Co. <6178> to lower its equity stakes in its two financial units to or below 50 pct between fiscal 2021 and fiscal 2025.
In a report submitted to Prime Minister Yoshihide Suga, the panel on postal service privatization also called on Japan Post Holdings to show during the five years, which will be covered by its next medium-term business plan, a road map for releasing all of its holdings of shares in the subsidiaries. Suga heads the government's headquarters for promoting postal service privatization.
Japan Post Holdings has an equity stake of about 90 pct in Japan Post Bank <7182> and about 60 pct in Japan Post Insurance Co. <7181>. The parent holding company is owned about 60 pct by the Japanese government.
Last November, Japan Post Holdings President Hiroya Masuda showed the parent company's plan to reduce its stakes in the two core units to or below 50 pct during the five-year period.
On Japan Post Holdings' plan to sell part of unprofitable businesses of its Australian logistics unit Toll Holdings Ltd., the panel called on the group to re-examine its strategy for international logistics operations immediately.
[Copyright The Jiji Press, Ltd.]