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MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Kansai Mirai Financial Group, Inc.    7321   JP3229500008

KANSAI MIRAI FINANCIAL GROUP, INC.

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Japan's Resona to take full control of regional lender Kansai Mirai

11/10/2020 | 04:33am EST

TOKYO (Reuters) - Japanese bank Resona Holdings Inc said on Tuesday it would pay up to 66.1 billion yen ($630 million) to take full control of Kansai Mirai Financial Group, giving it economies of scale as it weathers the impact of the pandemic and a low interest rate environment.

Resona, Japan's fourth-largest lender by assets, will acquire the 49% of Osaka-based regional lender Kansai Mirai it does not already own through a tender offer bid (TOB) and a stock swap, the bank said in a statement.

The move comes as Japanese Prime Minister Yoshihide Suga has pledged to strengthen local economies and encourage regional banks to consolidate and as the Bank of Japan unveiled on Tuesday a scheme aimed at incentivising regional lenders to consolidate.

Resona will pay 500 yen ($4.76) per share in Kansai Mirai in the TOB, which will be conducted from Nov. 11 through Dec. 9, according to the statement. The price has a premium of 23.46% to Monday's closing price.

The lender said it would allocate 1.42 Resona shares per Kansai Mirai share, if shareholders don't accept the tender offer.

"We are facing an unprecedented business environment and need to prepare for a long-term battle after the coronavirus pandemic," Masahiro Minami, Resona's president, told reporters at a news briefing.

Sumitomo Mitsui Financial Group Inc, which owns 23.5% of Kansai Mirai, has agreed to hand over all of the shares through the tender offer and a stock swap, Resona said.

Kansai Mirai will be delisted from the Tokyo Stock Exchange in March if the deal is completed, according to the two banks. That would avoid the Japanese practice of "parent-child" listings, which some analysts say is not good for investors as the subsidiary may follow the parent's directives rather than act in the best interest of shareholders.

Such a move was also seen in a deal by Nippon Telegraph and Telephone Corp (NTT) which said in September it would launch a tender offer for the 34% of NTT Docomo Inc stock that it does not own, and Docomo would be delisted.

($1 = 105.0300 yen)

(Reporting by Takashi Umekawa; Editing by Chang-Ran Kim, Tom Hogue and Susan Fenton)

By Takashi Umekawa


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
KANSAI MIRAI FINANCIAL GROUP, INC. 0.18% 547 End-of-day quote.9.62%
MIRAI CORPORATION -0.39% 38550 End-of-day quote.0.26%
NIPPON TELEGRAPH AND TELEPHONE CORPORATION -0.54% 2750 End-of-day quote.3.95%
NTT DOCOMO, INC. 0.00% 3880 End-of-day quote.0.00%
RESONA HOLDINGS, INC. -0.92% 389.7 End-of-day quote.8.13%
SUMITOMO MITSUI FINANCIAL GROUP, INC. -0.56% 3524 End-of-day quote.10.54%
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Financials
Sales 2020 171 B 1 648 M 1 648 M
Net income 2020 3 925 M 37,8 M 37,8 M
Net cash 2020 822 B 7 907 M 7 907 M
P/E ratio 2020 37,0x
Yield 2020 2,57%
Capitalization 204 B 1 963 M 1 961 M
EV / Sales 2019 -4,12x
EV / Sales 2020 -3,95x
Nbr of Employees 6 405
Free-Float 34,6%
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Managers and Directors
NameTitle
Tetsuya Kan President & Representative Director
Kazumasa Hashimoto Representative Director
Hiroaki Hattori Representative Director
Koji Nakamae Representative Director
Norihisa Kusumi Director