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Japan govt names six investment banks for Japan Post share sale
March 29, 2017 / 8:29 AM / 5 months ago

Japan govt names six investment banks for Japan Post share sale

Japan Post's logo is seen at its headquarters in Tokyo, Japan, January 30, 2017.Kim Kyung-Hoon

TOKYO (Reuters) - Japan's government named six investment banks to serve as underwriters for the sale of additional shares in Japan Post Holdings Co (6178.T), which is partly aimed at funding the rebuilding of areas hit by the 2011 earthquake and tsunami.

The government plans to eventually raise about 4 trillion yen ($35.98 billion) through additional stake sales in the Japan Post group to fund the reconstruction.

Daiwa Securities, Nomura Securities and Goldman Sachs will serve as global coordinators for the sale, Japan's Finance Ministry said on Wednesday.

Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities, and Merrill Lynch Japan will also underwrite the sale, it said in a statement.

The timing of the share sale has not been decided, a Finance Ministry official told reporters.

Japan Post, a conglomerate that spans postal delivery, banking and insurance, made an unprecedented three-way initial public offering in November 2015.

The government sold about $12 billion worth of shares in Japan Post, Japan Post Bank Co (7182.T), and Japan Post Insurance Co (7181.T) in the IPO, which was the largest privatization of a Japanese state-owned firm since that of Nippon Telegraph and Telephone Corp (9432.T) in 1987.

Japan Post Holdings' shares surged as much as 40 percent over its IPO price of 1,400 yen in the weeks following its stock market debut, but then fell rapidly at the start of last year.

Since then, the share price has recovered somewhat and is now fluctuating just above the IPO price.

The parent company's stock ended down 2 percent on Wednesday at 1,420 yen, while the broader Nikkei 225 .N225 share average edged up 0.08 percent.

Reporting by Stanley White; Editing by Biju Dwarakanath

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