Disposal of preferred stocks of Hokuhoku Financial Group, Inc.

News Release

Date: June 23, 2008

Statement by the Governor

1.

Hokuhoku Financial Group, Inc. made a request for the disposal of preferred stocks 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 the RCC to 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, 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 Law.The details are as follows:

 

 ・ Outline of the preferred stock

Name of stock Preferred (Type 1) Preferred (Type 4)
Amount issued ¥75 billion ¥45.03 billion
Number of shares issued 150,000,000 shares 79,000,000 shares
Issue price ¥500 per share ¥570 per share
Value possessed ¥40 billion ¥45.03 billion
Number of shares possessed 80,000,000 shares 79,000,000 shares
 

 ・ Outline of the disposal

Name of stock Preferred (Type 1) Preferred (Type 4)
Disposed book value ¥15 billion ¥10.032 billion
Number of shares disposed 30,000,000 shares 17,600,000 shares
Disposal price ¥600.60 per share ¥687.08 per share
Total amount of disposal ¥18,018,000,000 ¥12,092,608,000
Date scheduled for disposal June 26,2008
 

·Outstanding of each preferred stock after disposal

Preferred (Type 1) Preferred (Type 4) Total
¥25 billion
(¥75 billion )
¥34.998 billion
(¥45.03 billion)
¥59.998 billion
(¥120.03 billion)
Note: Figure in parentheses shows the amount of initial injection

Top of Page