Nintendo is preparing a major unwinding of strategic cross-shareholdings that could see banks sell roughly 300 billion yen ($1.9 billion) worth of shares in the gaming giant.
Among the institutions expected to participate are Mitsubishi UFJ Financial Group and Kyoto Financial Group. A decision could come as soon as Friday, two sources said, News.Az reports, citing Reuters.
As of September last year, the Bank of Kyoto held a 4.19% stake in Nintendo, while MUFG Bank, Japan’s largest lender, had a 3.62% stake via a trust bank.
Both financial groups have policies aimed at reducing cross-shareholdings, a long-standing corporate practice in Japan where companies hold shares in one another to strengthen business ties.
In addition to the planned share sale, Nintendo is also considering a share buyback, sources said. The company has not commented publicly on the report.
Nintendo shares trimmed earlier gains but were still up 2.4% in Tokyo trading. Meanwhile, shares of Kyoto Financial Group jumped 9% following the news.
Japanese regulators and the Tokyo Stock Exchange have been pushing companies to unwind cross-shareholdings in recent years, arguing that the practice can shield management from shareholder pressure.
Earlier this week, Toyota Motor Corporation was also reported to be planning a large-scale reduction of strategic holdings, highlighting a broader shift in Japan’s corporate governance landscape.
If confirmed, the move would mark another significant step in Japan’s efforts to modernize corporate structures and increase transparency for investors.
News.Az
By Aysel Mammadzada
AloJapan.com