Disposal of preferred shares of Resona Holdings, Inc.

Press Releases

Date: August 26, 2010

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 issued under the provisions of the Deposit Insurance Act (Item 1 measures of Paragraph 1, Article 102) and held by DICJ.
 
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 ¥550 billion ¥563.562 billion ¥550 billion

• Outline of the disposal

Name of share Class 1 Series 1 Preferred Shares
Disposed book value ¥400 billion
Number of shares disposed 200,000,000 shares
Disposal price ¥2,128.60 per share
Total amount of disposal ¥425.72 billion
Date scheduled for disposal August 31, 2010

• 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
¥150 billion
(¥550 billion)
¥563.562 billion
(¥563.562 billion)
¥550 billion
(¥550 billion)
¥1,263.562 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) ¥261.696.5 billion common shares based on the Deposit Insurance Act; and (2) ¥160 billion preferred shares based on the Early Strengthening Act.

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