• SHARE

Hanshin Electric Railway Co. ended its last trading day on the Tokyo Stock Exchange sharply higher Monday, reflecting expectations of favorable business effects from its Oct. 1 merger with Hankyu Holdings Inc.

Hanshin finished at 990 yen, up 80 yen, or 8.8 percent, from the previous day, marking the fourth-biggest rise on the TSE’s first section in percentage terms.

Hanshin will be delisted from the TSE on Tuesday ahead of the merger.

Hankyu advanced 61 yen, or 9.3 percent, to 717 yen. The issue’s percentage increase was the third biggest on the TSE’s main section.

“Hopes are growing for a positive impact from the Hankyu-Hanshin merger,” a securities house official said.

Hankyu and Hanshin — two major railways in western Japan — agreed in May to integrate their operations under a holding firm.

The accord came at the time a hostile takeover bid for Hanshin was made by the investment fund of financier Yoshiaki Murakami.

In June, the Murakami fund terminated its bid by agreeing to sell most of its stake in Hanshin to Hankyu. Murakami was later arrested for alleged insider trading in a matter unrelated to the Hanshin takeover bid.

The Hankyu-Hanshin group will be the nation’s third-largest railway, not including the nationwide Japan Railway 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.

SUBSCRIBE NOW

PHOTO GALLERY (CLICK TO ENLARGE)