Jiji Press TOKYO (Jiji Press) — The government will additionally sell up to 990,099,100 shares in Japan Post Holdings Co., or 22 percent 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 Tohoku northeastern region.
The selling price will be determined between Sept. 25 and 27, following a so-called book-building process to assess demand, with the share sale seen taking place between Sept. 29 and Oct. 3, the ministry said.
Japan Post Holdings decided on Monday to buy back up to 100 million own shares for ¥100 billion at the maximum, to alleviate the impact of the share sale on the market.
The government, which had fully owned the company, released the first tranche of its shareholdings at the time of the company’s stock listing in November 2015.
Eventually, it plans to reduce its stake in Japan Post Holdings to just over one-third of all outstanding shares through several sales.