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The government plans to extend the deadline for selling shares in Japan Post Holdings Co. and Tokyo Metro Co. by five years from fiscal 2022, sources have said.

Legislation is expected to be submitted to the ongoing ordinary session of the Diet to extend the deadline, the sources said Wednesday.

Proceeds from the sale of government-held shares in the two companies will be used to redeem bonds that were issued to fund reconstruction of areas devastated by the March 2011 earthquake and tsunami.

The government had already decided to extend the planned lifetime of the Reconstruction Agency by 10 years from the end of fiscal 2020, and its special financial account for post-disaster reconstruction will also be extended 10 years.

In line with those time scales, the government reviewed the deadline for selling shares in Japan Post Holdings and Tokyo Metro.

It expects to source a total of ¥4 trillion by selling its Japan Post Holdings shares. It hopes to raise an additional ¥1.2 trillion by selling more of its Japan Post Holdings shares, which along with the ¥2.8 trillion it has already secured would bring the total funding it has sourced from sales of the shares to ¥4 trillion.

By law, though, the central government is required to maintain above one-third of its holdings in the company.

But concerns are mounting that it may not reach its target, as the company’s stock price has slumped due to improper sales practices at Japan Post Insurance Co.

All shares in Tokyo Metro are held by the central and Tokyo metropolitan governments.

The central government wants Tokyo Metro to go public so that it can sell some of its shareholdings and raise additional funds for post-disaster reconstruction, the sources said.

But little progress has been seen in its negotiations with the metropolitan government, which is said to be keen to maintain its strong influence over Tokyo Metro.

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