Business

Government preps second Japan Post share sale to raise over ¥1 trillion for Tohoku

Kyodo

The government plans to raise more than ¥1 trillion ($9 billion) this month by selling a second tranche of Japan Post shares, sources said.

The proceeds will be used to finance reconstruction in areas damaged by the March 2011 earthquake and tsunami, the sources said Friday.

Japan Post Holdings Co. shares have traded at around ¥1,340 to ¥1,410 over the past month. They debuted at ¥1,400 when the initial public offering took place in 2015.

The company fell into the red in fiscal 2016 due to losses related to its Australian logistics subsidiary Toll Holdings Ltd. But it logged a profit in the April-June first quarter of fiscal 2017.

The government, which raised ¥1.4 trillion in its first share sale, holds around 80 percent of all Japan Post shares, a stake that by law must be reduced eventually to around a third.

The government plans to hold several more stake sales by fiscal 2022 to secure around ¥4 trillion in reconstruction funds.

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