UPDATE 1-Japan's Resona says to repay $2.3 bln in public funds in July

Fri Jul 25, 2014 5:02am EDT

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TOKYO, July 25 (Reuters) - Japan's fourth-largest bank Resona Holdings Inc said on Friday that it will pay back 235 billion yen ($2.3 billion) to the government on July 30 by buying back preferred shares issued as part of a bailout more than a decade ago.

After the payback, the Deposit Insurance Corp of Japan, which has been the largest shareholder in the bank, will have no voting stake, the bank said. That compares with a 4.3 percent voting stake currently.

Resona said it will pay 2,397.4 yen per share to buy back the preferred shares issued to the Deposit Insurance Corp, representing a 20 percent premium to the issue price.

After the buyback, the bank will still need to repay 128 billion yen in public funds, it said. At the peak in 2003, when the bank was nationalised, it had received 3.1 trillion yen in public money.

The bank has said it plans to complete repayment of the public money by the end of March 2018. ($1 = 101.8800 Japanese Yen) (Reporting by Taiga Uranaka; Editing by Edmund Klamann and Ryan Woo)

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