Gov't to sell ¥1 tril tranche of Japan Post shares

how does this work "privatized 14 years ago".... yet the J-Gov owned 60%.... can anyone explain? in simple terms please....

can anyone explain

They want the public and investors to believe JP is a private corporation, and Kyodo "journalists" report what they tell them to report without questioning their motives.

Partially privatized, major share holder remains Japanese state. It will thus lose thie majority status by adding a third of all shares on the market to be become a minority share holder although with power

Why buyback shares about dilution concerns ? Only benefitial countries or societies are supposed to do that ! (Think of Apple, Facebook, or petrol majors udually). This action is a purr investment with probably no return to expect much since stock exchange is high.

@diagonalslip

It isn't the plan was to finish privatization of the postal service by 2028 looks like they are gonna fast track part of it a little before the election. Speculation: Perhaps some of the LDP elite want to snap up a bunch of shares before CDPJ take over the government.

First problem of all is, that they are doing most of their customer related business when people don’t have any time. You’ll need quite a good map, a car with enough gasoline and much time to find an open post office after 5pm or on weekends. So even if you are a rich employee and want to send or receive something, make some money transactions, invest a bit into funds or make an insurance deal, etc, you won’t find anyone there and only run with your face against a closed door.

how does this work "privatized 14 years ago".... yet the J-Gov owned 60%.... can anyone explain? in simple terms please....

Japan Post used to be a government agency, which was just another government department. In 2003 the government reorganized it as a corporation with tradable shares, but it remained 100% government owned. In 2007 legislation came into effect which allowed the government to sell those shares on the market (which is what they refer to when they say it was privatized 14 years ago), but in the years since the government has only sold some of those shares.

So its an entity that today has one foot in both worlds. Its majority shareholder is the government so it is different from private companies (Sony, Toyota, etc) in that respect. But it also has private shareholders and its shares can be traded on the stock exchange, so its different from public agencies too.

i'm surprised Japan Post (the post office piece of the business) is actually making money (positive net income)... most Post offices are money losing businesses....

There are one good thing and one bad thing from this.

Good: Getting rid of useless bureaucrats with Nihonjinron craps. Bad: Good preys for Elliot Management and other corporate raiders of foreign origins. Look at Shinsei Bank, the corporate raiders ruined it so good and made huge profits. Hell, there is a chance that the Chinese may start buying ownership gradually like what they are doing with Rakuten.

Finally - but if only there were another 1,000 such state assets that could be sold to pay down the 1,160 trillion of accumulated public debt.

This sale of the hated Post Office is a “neoliberal” policy by the way; funny that they are selling shares now just after Kishida tells everyone he wants to move away from the “neoliberal” policies of Koizumi. Of which privatizing JP was the only one I can even remember, haha

The Finance Ministry said the proceeds from the share sale, which will lower the government's stake from 60.6 percent to 33.3 percent, will finance reconstruction work in northeastern Japan areas devastated by the March 2011 earthquake and tsunami.

Does this mean they will now stop the ‘special reconstruction tax’ that they levy on everyone when you submit your taxes?

thank you Jeff, Jonathan, James, and Rainday.... that'll do nicely....!

and to the person who gave me a thumbsdown for asking a question.... hope you have a better day tomorrow.

Zichi...

The government has already spent ¥30 trillion on the Tohoku reconstruction. Too many ugly seawalls.

Especially wasteful when this whole area will be virtually depopulated in the next 30 years. It would have been so much cheaper to pay for the rehousing of those at risk... But of course the real purpose of reconstruction is to put money and jobs into the construction industry.

Bought by the Japanese public and then sold back to them and then taken away again by the government-what a lark!

Typically these listings are undervalued and are not available for purchase by the general public. There will be something like a minimum order that shuts out all but the very well connected and the price will magically rise immediately after the issue.