Some of Nintendo’s most established shareholders are moving to unwind sizable positions, in what could mark one of the more notable cross-shareholding reductions in Japan this year. Nintendo (NTDOY) disclosed that sellers including the Bank of Kyoto, DeNA Co., the manager of MUFG Bank’s retiree allowance trust account and Resona Bank plan to offload 32.7 million shares through a secondary offering, with an overallotment option of up to 4.9 million additional shares. Based on Thursday’s closing price of 8,737, Bloomberg News calculated the deal’s value at about 285.7 billion ($1.9 billion). Shares ended 3% higher in Tokyo on Friday after Reuters first reported the planned sale, suggesting investors may be weighing the broader context rather than reacting purely to supply dynamics.
Importantly, the company paired the announcement with a buyback authorization of as much as 100 billion, a step that could help offset some of the new shares coming to market. Toyo Securities analyst Hideki Yasuda indicated that if the offering is matched with repurchases, the impact on liquidity may be limited. He framed the transaction as consistent with guidance from regulators and the Tokyo Stock Exchange urging companies and financial institutions to reduce strategic shareholdings. As of the end of September, the Bank of Kyoto held roughly a 4.19% stake in Nintendo, underscoring the scale of the unwind relative to its previous position.
The move also fits into a broader structural shift. Kyoto Financial Group, parent of the Bank of Kyoto, has previously argued that cross-holdings can provide a stable base for innovation, yet financial institutions are facing mounting pressure from regulators and investors who see such arrangements as potentially constraining governance reform. Share offerings in Japan have reached approximately 3.2 trillion in 2025, nearing the 3.66 trillion record set in 2024, according to data compiled by Bloomberg. Against that backdrop, Nintendo’s transaction could be viewed less as an isolated event and more as part of an ongoing recalibration of corporate ownership structures across the Japanese market.
AloJapan.com