Japan Post Holdings Co. will submit a plan for going public in 2015 to the minister for postal reform today. It hopes to receive approval from the postal privatization committee next Monday.
The Japan Post group has net assets of roughly JPY 11 trillion (USD 137 Billion). Under the plan, the government will sell 2/3 of its holdings in stages beginning in the autumn of 2015 and hopes to raise up to JPY 7 trillion.
The matter of selling shares in Japan Post Bank and Japan Post Insurance Co. -- the group's biggest profit earners -- has been shelved for now, while its money-losing postal services business needs to be turned around.
It is expected that the approval of the plan will pave the way for the Japan Post to expand into new businesses, such as mortgages. Commercial banks have been adamantly objecting the Japan Post to enter into their business territory as they see the condition for fair competition is hard to be ensured with JP's massive size and the government backing.
October 26, 2012
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