(Adds details, background)
TOKYO, July 25 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
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