Disposal of Preferred Shares of Kiyo Holdings

Press Release

Date: September 2, 2013

1. Kiyo Holdings, Inc. has recently made a request to the Deposit Insurance Corporation of Japan (“DICJ”) for repurchasing its preferred shares subscribed by the Resolution and Collection Corporation (“RCC”) in accordance with the Act on Special Measures for Strengthening Financial Functions.
   
2. The DICJ considered the request based on its “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments” announced in October 2005, and did not find any special problems in view of the following:
  • The soundness of management of the financial institution;
  • Avoiding public costs; and
  • Financial system stability.

Therefore the DICJ applied for approval from the Commissioner of the Financial Services Agency and the Minister of Finance for the request, and the application was approved today. 
Based this, the DICJ today approved the request for the disposal from the RCC.

   
3. This disposal, which is outlined as below, will result in full repayment of public funds injected into Kiyo Holdings, Inc.
 

Outline of related preferred shares

Name of share Class 1 Series 4 Preferred Shares
Total amount issued ¥31.5 billion
Number of shares issued 45,000,000 shares
Issue price ¥700 per share
Amount currently held ¥16.1 billion
Number of shares currently held 23,000,000 shares
 

Outline of the disposal by the RCC (repurchase by Kiyo Holdings)

Name of share Class 1 Series 4 Preferred Shares
Book value of disposal ¥16.1 billion
Number of shares disposed 23,000,000 shares
Disposal price ¥787.01 per share
Total amount of disposal ¥18,101,230,000
Date scheduled for disposal September 5, 2013

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