The chief executive of Japanese financial services firm SBI Holdings Inc , owner of a nearly 48% stake in Shinsei Bank Ltd , said on Wednesday it's worth pursuing the option of taking the lender private to return more than $3 billion in public funds it received two decades ago.
, said on Wednesday it's worth pursuing the option of taking the lender private to return more than $3 billion in public funds it received two decades ago.
SBI CEO Yoshitaka Kitao made the comment at a news conference after SBI completed a tender offer for Shinsei Bank, raising its holding in the mid-sized lender to 47.77% from about 20%. "We've just started exploring the possibility ," Kitao said. "We plan to discuss this matter with the Financial Services Agency ."Shinsei Bank, with a market capitalisation of close to 500 billion yen, still owes the government the 350 billion yen in public money it received during a banking crisis two decades ago.
As a result, the government still owns about 20% of Shinsei. In order for it to recoup the full amount lent by selling shares on the market, Shinsei stock would need to go up to around 7,500 yen. Shinsei shares jumped over 7% to 1,929 yen early on Wednesday.Reporting by Makiko Yamazaki; Editing by Tom Hogue and Kenneth MaxwellSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.