Japan Post Privatisation Project to be Submitted in June

Plans to float part of Japan Post’s business, which were announced in December, represent the culmination of a lengthy process with much at stake politically. The holding company, one of the world’s largest financial bodies, and two of its four subsidiaries – tasked with banking and insurance – will be opened to investors.

The holding company will continue to manage postal services and mail delivery, to which the Japanese are very attached due to the extensive network reaching even the most remote corners of the archipelago.

The project will be submitted to the Tokyo stock exchange in June, with the goal of organising an initial public offering between August and December. “The law on privatisation of Japan Post requires us to bring in private equity as soon as possible,” said CEO Taizo Nishimuro, adding that listing the three parts of the business at the same time “was the best way to ensure fair valuation”. Eleven banks, including JP Morgan and Nomura Holdings, will manage the operation.

Privatisation will involve several steps. The first phase should raise ¥1tn to ¥2tn ($8.4bn to $16.8bn) according to Japan’s ministry of finance, which has given the go-ahead for the initial public offering. The proceeds will be used to rebuild areas devastated by the earthquake, tidal wave and subsequent Fukushima nuclear disaster that hit Japan in March 2011.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza