JAL to seek late-June share relisting

JIJI

Japan Airlines plans to apply to relist its shares on the first section of the Tokyo Stock Exchange as early as late June, sources said.

If approved, the government-backed Enterprise Turnaround Initiative Corp. of Japan, which holds most of JAL’s outstanding shares, is expected to sell them in September, the sources said.

JAL was delisted in February 2010 after filing for bankruptcy protection the previous month.

JAL submitted a preliminary relisting application late last month.

The government wants an early JAL relisting as it plans to sell shares in Japan Tobacco Inc. as early as this fall. The government is concerned that if JAL’s relisting coincides with the JT share sale, stock markets will be adversely affected, other sources said.

JAL is expected to post a group operating profit of over ¥180 billion in the year that ended in March after logging a record profit of ¥188.4 billion the previous year.