Nippon Credit Bank and Bankers Trust Co. of the United States will hold between 1 billion yen and 2 billion yen in each other's shares, and Bankers Trust will also acquire an option to buy additional NCB shares worth 15 billion yen in three years, NCB announced Sept. 30.
The mutual capital participation, based on their business cooperation accord concluded in April, is expected to help stabilize NCB management, which is presently implementing restructuring efforts, and also consolidate Bankers Trust's position to exploit Japan's looming financial deregulation.
If Bankers Trust exercises its option in three years, it could obtain between 3 percent and 4 percent of NCB shares and become one of the five largest shareholders of NCB, the smallest of Japan's three long-term credit banks. Since April, Bankers Trust has purchased NCB shares worth between 1 billion yen and 2 billion yen, although the exact amount has not been made available. Under the latest agreement, NCB will buy Bankers Trust's shares at the same value by the end of this year, NCB said.