Disposal of preferred shares of Gifu Bank

Press Releases

Date: December 17, 2010

1.  Gifu Bank made a request for the disposal of preferred shares subscribed by the Resolution and Collection Corporation (RCC) in accordance with the Act on Emergency Measures for Early Strengthening of Financial Functions (“Early Strengthening Act”), through the RCC to Deposit Insurance Corporation of Japan (DICJ).
 
2.  DICJ considered the requests 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 requests for the disposal in view of the followings:

  • Soundness of management of the financial institution
  • Avoiding public burden
  • Financial system stability
Therefore, the DICJ approved today the privilege of acquisition claim and disposal which are to be exercised by the RCC as DICJ considered the transaction was in line with the policy of early disposal under the Early Strengthening Act.
 
3.  This disposal will result in full repayment of public funds injected into Gifu Bank.

• Outline of preferred shares

Name of share Class 1 Series 1 Preferred Shares
Amount issued ¥12 billion
Number of shares issued 30,000,000 shares
Issue price ¥400 per share
Value possessed ¥12 billion
Number of shares possessed 30,000,000 shares

• Outline of the disposal

Name of share Class 1 Series 1 Preferred Shares
Disposed book value ¥12 billion
Number of shares disposed 30,000,000 shares
Disposal price ¥403.528 per share
Total amount of disposal ¥12,105,840,000
Date scheduled for disposal December 22, 2010

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