The transport ministry has approved the idea of a share sale of Tokyo’s subway-system operator, setting the stage for one of the country’s largest privatizations and exchange listings in recent years.
A report supporting the government divesting part of its stake in Tokyo Metro Co., which operates nine subway lines in the world’s largest metropolitan area, didn’t specify any time frame or offering size. Still, the recommendation paves the way for it to join sales of Japan Tobacco Inc. and Japan Post Holdings Co. to help the government fund debt repayment.
"A listing of Tokyo Metro is the best way to maximize the effects of a privatization,” a ministry panel said in a report released on Thursday. Transport minister Kazuyoshi Akaba said his agency would proceed with the necessary steps to carry out the sale.