Disposal of preferred shares of Resona Holdings, Inc. and Higashi-Nippon Bank

Press Releases

Date: March 8, 2011

1.Resona Holdings, Inc.

(1) Resona Holdings, Inc. made a request to the Deposit Insurance Corporation of Japan (DICJ) for disposal of Resona HD’s preferred shares which were held by DICJ under the provisions of the Deposit Insurance Act.
(2)
DICJ considered the request based on “Immediate Guideline for Disposal of Preferred Stocks, etc. Acquired through Capital Injection with Public Funds” announced in October 2005, and found it appropriate to give its approval to the request for the redemption in view of the followings:

  • Sound operation of the financial institution;
  • Avoiding public costs;
  • Financial system stability.
Therefore, the DICJ applied for approval of disposal to the Commissioner of the Financial Services Agency as well as the Minister of Finance, and the application was duly approved today.
(3) As approved, the DICJ disposes of Resona HD’s shares as follows:

• Outline of preferred shares

Name of share Class 1 Series 1 Preferred Shares Class 2 Series 1 Preferred Shares Class 3 Series 1 Preferred Shares
Amount issued ¥550 billion ¥563.562 billion ¥550 billion
Number of shares issued 275,000,000 shares 281,780,786 shares 275,000,000 shares
Issue price ¥2,000 per share ¥2,000 per share ¥2,000 per share
Value possessed ¥150 billion ¥563.562 billion ¥550 billion
Number of shares possessed 75,000,000 shares 281,780,786 shares 275,000,000 shares

• Outline of the disposal

Name of share Class 1 Series 1 Preferred Shares Class 2 Series 1 Preferred Shares Class 3 Series 1 Preferred Shares
Disposed book value ¥150 billion ¥563.562 billion ¥100 billion
Number of shares disposed 75,000,000 shares 281,780,786 shares 50,000,000 shares
Disposal price ¥2,134.60 per share ¥2,167.00 per share ¥2,225.00 per share
Total amount of disposal ¥160.095 billion ¥610.619 billion ¥111.250 billion
Date scheduled for disposal March 11, 2011

• Outstanding balance of preferred shares after disposal

Class 1 Series 1 Preferred Shares Class 2 Series 1 Preferred Shares Class 3 Series 1 Preferred Shares Total
¥0 billion
(¥550 billion )
¥0 billion
(¥563.562 billion)
¥450 billion
(¥550 billion)
¥450 billion
(¥1,663.562 billion)
Note 1: Figures in parentheses show the amounts of initial injection.
Note 2 Outstanding balance of public funds injected into Resona Holdings, Inc. is: (1) ¥261.6965 billion common shares based on the Deposit Insurance Act; and (2) ¥160 billion preferred shares based on the Early Strengthening Act.

2.Higashi-Nippon Bank

(1) Higashi-Nippon Bank made a request to the Deposit Insurance Corporation of Japan (DICJ) for disposal of Higashi-Nippon Bank’s preferred shares which were held by RCC under the provisions of the Act on Emergency Measures for Early Strengthening of Financial Functions.
(2)
DICJ considered the request based on “Immediate Guideline for Disposal of Preferred Stocks, etc. Acquired through Capital Injection with Public Funds” announced in October 2005, and found it appropriate to give its approval to the request for the redemption in view of the followings:

  • Sound operation of the financial institution;
  • Avoiding public costs;
  • Financial system stability.
Therefore, the DICJ applied for approval of disposal to the Commissioner of the Financial Services Agency as well as the Minister of Finance, and the application was duly approved today.
(3) The outline of this disposal is as follows, and this proposal will result in full repayment of public funds injected into Higashi-Nippon Bank.

• Outline of preferred shares

Name of share Series 1 Preferred Shares
Amount issued ¥20 billion
Number of shares issued 10,000,000 shares
Issue price ¥2,000 per share
Value possessed ¥20 billion
Number of shares possessed 10,000,000 shares

• Outline of the disposal

Name of share Series 1 Preferred Shares
Disposed book value ¥20 billion
Number of shares disposed 10,000,000 shares
Disposal price ¥2,009.7644 per share
Total amount of disposal ¥20,097,644,000
Date scheduled for disposal March 11, 2011

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