The government will fully privatize West Japan Railway Co. next month by selling off its entire 31.72 percent stake in Japan and abroad, JR West said Friday.
It follows Tokyo-based East Japan Railway Co., the first JR group firm to be fully privatized in June 2002.
JR West President Takeshi Kakiuchi said in a statement that the full privatization has been "a long-cherished wish" since the company's establishment in 1987. It has urged the government to sell all of its equity ownership in the Osaka-based carrier at an early date, he said.
The stake in JR West, equal to 634,344 shares, is held by the Japan Railway Construction, Transport and Technology Agency, an independent administrative institution.
The institution said an offering price will be decided between March 5 and 10, with Nikko Citigroup Ltd. and UBS Ltd. serving as joint global coordinators in the offering.
Subscriptions in Japan will be accepted from the first business day following the setting of the offer price, and stock delivery is expected to take place on the fourth business day after the price has been set.
JR West is among the seven key entities created through the 1987 privatization of the defunct Japanese National Railways.
The railway construction agency, formerly known as Japan Railway Construction Public Corp., still owns 39.6 percent of Central Japan Railway Co. (JR Tokai), the only other listed company of the seven JR firms.
The remaining four -- Hokkaido Railway Co., Shikoku Railway Co., Kyushu Railway Co. and Japan Freight Railway Co. -- are still fully owned by the agency.