TOKYO--The Japanese government said Monday that it will sell a
portion of its stake in Japan Tobacco Inc. (2914.TO), the world's
third-largest tobacco company by sales volume, in March in a
massive share offering that could total roughly Y960 billion ($10
billion).
The government will sell 333.33 million shares of Japan Tobacco,
or JT, or a 16.6% stake of shares outstanding. The fixed price will
be determined between March 11 and March 13.
The company, commonly known as JT, was privatized in 1985 and
the latest sale would be the fourth time that the government has
offered JT shares.
The Japanese government, which currently holds 50% of JT has
decided to scale down its stake to one third by selling the 16.6%
of JT's outstanding shares to raise funds for reconstruction after
the earthquake and tsunami on March 11, 2011.
Write to Hiroyuki Kachi at Hiroyuki.Kachi@dowjones.com
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