Disposal of preferred shares of Resona Holdings, Inc.

Press Releases

Date: March 10, 2009

Statement by the Governor
Disposal of preferred shares of Resona Holdings, Inc.

1.  Resona Holdings, Inc. made a request for the disposal of preferred shares subscribed by the Resolution and Collection Corporation (RCC) in accordance with the Law concerning Emergency Measures for Early Strengthening of Financial Functions ("Early Strengthening Law"), through RCC to the Deposit Insurance Corporation of Japan (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, DICJ approved today the privilege of acquisition claim and disposal which are to be exercised by RCC as DICJ considered the transaction was in line with the policy of early disposal under the Early Strengthening Law. The details are as follows:
• Outline of preferred stock
Name of shares Class B No.1 preferred shares Class E No.1 preferred shares
Total amount issued ¥408 billion ¥300 billion
Number of shares issued 68,000,000 shares 24,000,000 shares
Issue price ¥6,000 per share ¥12,500 per share
Outstanding balance ¥163,321,200,000 ¥11,970,000,000
• Outline of the disposal
Name of shares Class B No.1 preferred shares Class E No.1 preferred shares
Disposed book value ¥163,321,200,000 ¥11,970,000,000
Number of shares disposed 27,220,200 shares 957,600 shares
Disposal price ¥6,426 per share ¥5,763 per share
Total amount of disposal ¥174,917,005,200 ¥5,518,648,800
Date scheduled for disposal March 13, 2009
• Outstanding balance of preferred shares after disposal
Class B No.1 Class C No.1 Class E No.1 Class F No.1 Total
--
(¥408 billion)
¥60 billion
(¥60 billion)
--
(¥300 billion)
¥100 billion
(¥100 billion)
¥160 billion
(¥868 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) ¥45 billion subordinated loans based on the Early Strengthening Law (scheduled to be repaid on March 31, 2009); (2) ¥1,663.6 billion preferred shares based on the Deposit Insurance Law; and (3) ¥261.7 billion ordinary shares based on the Deposit Insurance Law.

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