Nintendo to sell $1.9b share sale by Kyoto bank, others: sources

Nintendo plans to sell about ¥300 billion (US$1.9 billion) worth of shares, sources said, involving companies like MUFG Bank and the Bank of Kyoto.

The move aims to unwind strategic cross-shareholdings, a practice regulators and the Tokyo Stock Exchange have encouraged to improve governance.

The sale could be announced as soon as February 27, and Nintendo may also conduct a share buyback, the sources added.

The Bank of Kyoto held a 4.19% stake in Nintendo as of September last year, while MUFG Bank’s 3.62% stake is held via a trust bank.

Mitsubishi UFJ Financial Group declined to comment, and Kyoto Financial Group did not respond to requests.

🔗 Source: Reuters

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Nintendo plans to sell shares to unwind strategic cross-shareholdings, a step that fits a longer push from Japanese regulators and the Tokyo Stock Exchange for tighter corporate governance.
Cross-shareholdings in Japan involve companies owning stakes in one another to reinforce business ties, a structure critics say can weaken accountability to shareholders.
Japanese regulators and the Tokyo Stock Exchange have urged firms to reduce these holdings, and Nintendo’s planned sale follows that direction.
The sale would involve stakes linked to MUFG Bank and the Bank of Kyoto, with an announcement possible as soon as Friday.
Mitsubishi UFJ Financial Group declined to comment, while Kyoto Financial Group did not respond to requests.

If completed, the sale would turn strategic stakes into cash instead of leaving funds tied up in passive holdings.
Sources said Nintendo may also pursue a share buyback, which uses cash to repurchase its own shares.
Market moves suggested approval after the plan became public, with Kyoto Financial Group up 9% and Nintendo rising 2.4%.