Japan is planning to sell a 27% stake in Japan Post Holdings, whose listed subsidiaries include one of Asia’s largest life insurers Japan Post Insurance.

The government plans to sell approximately 1.03 billion shares of the conglomerate.

Based on Wednesday’s closing price, the divesture could fetch nearly $8.52bn (JPY952bn). The final price will be determined between 25 October 2021 and 27 October 2021.

The sale would reduce the government’s shareholding in Japan Post to one third, which is the minimum allowed by law.

“The Postal Service Privatization Act stipulates that the Japanese government shall dispose of the Company shares it holds as early as possible, except for shares which the government is obliged to hold,” Japan Post said in a statement.

The “revenues from the sale of shares until the fiscal year ending 21 March 2028 shall be used for financial resources for reconstruction,” the firm added.

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By GlobalData

Japan Post also owns a banking arm Japan Post Bank, which was one of the leading financial institutions in the world at a point in time.

In May this year, it was reported that Japan Post Insurance was planning to buy up to 29% of its shares worth nearly $3.3bn (JPY358.9bn).

The insurer was also under scanner for ill financial practices.

Japan Post Insurance admitted to having charged double premiums for life insurance policies from thousands of customers between April 2016 and December 2018.