JAL To Ask Banks, Trading Houses To Buy Shares

 

JAL To Ask Banks, Trading Houses To Buy Shares

JAL To Ask Banks, Trading Houses To Buy Shares

Japan Airlines plans to approach trading companies, lenders and others for purchase of its stock as it prepares to re-list, the Nikkei said.

But the shares may be a hard sell, especially since many companies incurred losses on their past JAL shareholdings in the run-up to the airline’s January 2010 bankruptcy protection filing, the daily said.

JAL has rebuilt under the government-backed Enterprise Turnaround Initiative of Japan, which supplied JPY¥350 billion (USD$4.54 billion) to the carrier and now holds a 96.5 percent interest, Nikkei said.

The airline aims to apply for approval to re-list in July and a stock offering is expected in September, the business daily said.

JAL wants stable shareholders to account for 20 percent of the investor base and may ask 20-30 firms for their cooperation, the daily said.

Airline executives will approach officials at trading houses Mitsubishi, Mitsui, Sumitomo, Itochu, Marubeni and Sojitz, the Nikkei reported.

JAL will also talk to major lenders Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Bank, the paper said.

However, bank executives were apparently reluctant to take on JAL stock, the daily said.

(Reuters)



Privacy policyContact us | Advertise with us