Fujitsu Ltd’s biggest shareholder plans to sell about $1 billion worth of the stock

News Hour:

Fujitsu Ltd’s biggest shareholder is planning to sell about $1 billion worth of the Japanese electronics conglomerate’s stock, part of a plan by the two firms to unwind their cross-shareholdings.

The sale comes at a time when Tokyo-listed firms are under pressure to justify their holdings after Prime Minister Shinzo Abe’s government introduced a new corporate governance code in 2015, reports Reuters.

While cross-shareholdings aimed at cementing business ties are common in Japan, they are often criticized for making management less responsive to individual and overseas shareholders.

A logo of Fujitsu is pictured at CEATEC (Combined Exhibition of Advanced Technologies) JAPAN 2016 at the Makuhari Messe in Chiba, Japan

Fujitsu’s biggest shareholder, Fuji Electric Co, plans to unload about 8.2 percent of its stock, most of its holding. SMBC Nikko Securities has been hired as an underwriter to sell the stock to overseas investors.

Terms of the share sale have not been decided but based on Fujitsu’s Tuesday closing price, the shares would be worth about 114 billion yen ($1 billion).

Fujitsu also said it plans to buy back up to 1.9 percent of its outstanding shares for as much as 25 billion yen to alleviate the impact of such a large stake sale on existing shareholders. Fujitsu was originally created in 1935 as a telephone equipment subsidiary of Fuji Electric.

Fujitsu, also the biggest shareholder in its former parent with a 10 percent stake, said it plans to sell its holding in Fuji Electric but the timing and scale of the sale have yet to be determined.


This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Sacred Games exposes Rajshri Deshpande nude [video]
3500 RMG workers in Bangladesh receive banking services for the first time through Sarathi
Ahoy Bangladesh Ltd. making medical treatment in India easy
Anurag Kashyap shoots Kubra Saith 7 times nude and made her cry for frontal nudity scene [Video]
Samsung launches Victory day campaign “Haater Muthhoy Bijoy Ullash” in Bangladesh
Uber received over 3,000 reports of sexual assault related to its 1.3 billion rides in the United States last year


News of the Month

February 2017
« Jan   Mar »
Scroll Up
%d bloggers like this: