Japan Government to Raise $7.4 Billion from Japan Post Share Sale

Posted on 11/24/2021

Japan Post Holdings completed a ¥843.1 billion (US$ 7.4 billion) global offering consisting of a domestic public offering in Japan and an international offering overseas. Japan Post Holdings is a holding company for various operating subsidiaries, including Japan Post Co., the principal postal operator in Japan, as well as Japan Post Bank and Japan Post Insurance. Banking and life insurance services are provided through Japan Post Co.’s post office network of more than 24,000 post offices, representing Japan’s largest physical network.

The Japanese government raised money from selling shares in Japan Post Holdings under a plan to secure reconstruction funding for areas hit by the 2011 earthquake and tsunami. The sale accounts for a stake of approximately 27%, lowering the Japan government’s ownership to one-third, which is the minimum allowed by law.

Law firm Sullivan & Cromwell LLP represented Japan Post Holdings, as issuer, and the Minister of Finance, as representative of the Japanese government, as selling shareholder. Sullivan & Cromwell LLP previously represented Japan Post Holdings and the Minister of Finance in the company’s 2015 initial public offering and 2017 follow-on offering. This latest offering completes the requirement under the Postal Service Privatization Act for the Japanese government to dispose of shares of Japan Post Holdings that exceed one-third of the total issued shares of common stock of Japan Post Holdings.

Keywords: Japan Post Holdings Co., Ltd. (Nippon Yusei Kabushiki Kaisha).

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