August 03, 2012

Japan Airlines to Be Re-listed, Bringing a Profit to ETIC

Japan Airlines Co. will be re-listed on the Tokyo Stock Exchange on 19 September 2012.

JAL filed for a bankruptcy on 19 January 2010 and received capital injection of JPY 350 billion (USD 4.5 billion) from the state-backed Enterprise Turnaround Initiative Corp. of Japan (ETIC). Having wiped out all of the shareholder equity 2.5 years ago, JAL has engaged in substantial corporate restructuring - reducing its flight routes and employees by 40% and cutting pension obligations and the number of subsidiaries by a half. It reported JPY 200 billion (USD 2.5 billion) operating profit in FY 2012.

ETIC, which owns approx. 96% of the carrier, will be selling its entire holdings at the listing. While the actual offering price will be set on 10 September, EITC would nearly double its investments if the price is set at JPY 3790, as reported by a media.

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