Japan Post Holding to Sell Stake worth USD 9.25B in Japan Post Bank

Japan Post Holdings announced on Monday that it will reduce its stake in Japan Post Bank from 89 percent to less than 65 percent in a deal worth approximately 1.26 trillion yen ($9.25 billion).

Japan Post Bank said in a statement announcing the secondary offering that its parent would sell approximately 975 million shares globally, including a greenshoe option to sell an additional 28.4 million shares overseas.

With an additional 113.6 million shares allotted in the domestic market, the sale could exceed 1 billion shares, reducing Japan Post Holdings' stake in the banking arm to 60%.

Along with previously announced share buybacks and treasury share retirements, Japan Post Bank stated that it would meet the Tokyo Stock Exchange's share liquidity requirements and help clear the way for the company to remain listed on the bourse's top section.

Japan Post Bank said it would buy back up to 4.5 percent of its own shares, or 150 billion yen, and cancel them.

Companies listed on the Tokyo Stock Exchange's Prime Market must maintain a tradable share ratio of 35% or higher, according to rules implemented last year.