A Seibu Railway group reform panel will ask four banks to dispatch representatives to the board of directors of a new company to lead the scandal-tainted group, panel sources said Wednesday.

Mizuho Corporate Bank is expected to send its vice president, Takashi Goto, as chief executive officer of the new company that will arise from a merger between Seibu Railway Co. and a spinoff from Kokudo Corp., the present core of the group, they said.

The other three banks are Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp. and the governmental Development Bank of Japan.

The panel plans to name a former official of the Land, Infrastructure and Transport Ministry as chairman of the new company, the sources said.

Mizuho Corporate Bank’s Goto is expected to join the Seibu group as an adviser in February at the earliest to take the lead in reforming the group, they said.

The panel, chaired by Ken Moroi, an adviser to Taiheiyo Cement Corp., has been considering how best to realign the business group.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.