JAPAN TODAY




 

The Japanese government plans to sell by early November a 1 trillion yen tranche of shares in Japan Post Holdings Co, a postal and financial services group privatized 14 years ago.

The Finance Ministry said the proceeds from the share sale, which will lower the government's stake from 60.6 percent to 33.3 percent, will finance reconstruction work in northeastern Japan areas devastated by the March 2011 earthquake and tsunami.

The government has so far sold about 3 trillion yen of the postal group's shares since 2015 as part of its plan to raise 4 trillion yen for the reconstruction work.

The country's postal service privatization law requires the state to eventually lower its shareholding to one third of the total.

The sale price for the latest tranche will be set between Oct 25 and 27. The sale will be completed by Nov 2, the ministry said.

Japan Post said the same day it will buy back up to 100 billion yen of its own shares in the market after the government's sale of the tranche and cancel them to ease share dilution concerns.

© KYODO