Govt to lower shareholding?

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Industry Spotlight

Japan

After the devastating magnitude 9.0 earthquake of March 11, 2011 off the coast of T?hoku, the Japanese government has been looking for ways to find extra revenue in order to finance the reconstruction efforts in many affected areas of the country.
According to a recent Reuters report, one plan is to sell a part of its stake in Japan Tobacco, Inc. (JTI) which, according to government estimates, should raise about ¥500 billion (US$6.5 billion).

In order to implement the sell-off, however, the Japanese government needs to pass new legislation to change its mandated minimum stake in the company from its current level of 50% to more than one third.
The sale of the shares in JTI, and in Nippon Telegraph, has been on the government agenda for a while and it looks like the lawmakers are determined to see the issue through. It is, however, unclear, whether the government will receive support for the move from the opposition parties and particularly from Japanese tobacco farmers.

Quarter 1, 2012

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