Japanese government to raise $ 7.4 billion from sale of Japan Post shares
Posted on 11/24/2021
Japan Post Holdings has finalized a global offering of 843.1 billion yen (US $ 7.4 billion) consisting of a domestic public offering in Japan and an international offering abroad. Japan Post Holdings is a holding company for various operating subsidiaries, including Japan Post Co., the main postal operator in Japan, as well as Japan Post Bank and Japan Post Insurance. Banking and life insurance services are provided through Japan Post Co.’s post office network of more than 24,000 post offices, representing Japan’s largest physical network.
The Japanese government raised funds by selling shares of Japan Post Holdings as part of a plan to secure funding for reconstruction in areas affected by the 2011 earthquake and tsunami. The sale represents a stake in ‘about 27%, lowering the Japanese government’s stake to a third, which is the minimum allowed by law.
The law firm Sullivan & Cromwell LLP represented Japan Post Holdings, as issuer, and the Minister of Finance, as representative of the Japanese government, as the selling shareholder. Sullivan & Cromwell LLP previously represented Japan Post Holdings and the Minister of Finance in the company’s initial public offering in 2015 and follow-up offering in 2017. The latter offering complements the requirement under the Act. the privatization of postal services for the Japanese government to dispose of the shares of Japan Post Holdings which exceed one-third of the total issued ordinary shares of Japan Post Holdings.
Keywords: Japan Post Holdings Co., Ltd. (Nippon Yusei Kabushiki Kaisha).