March 18, 2016 / 2:00 AM / 3 years ago

Japan's Idemitsu eyes $1.5 bln loan to buy Showa Shell shares

People cycle behind a signboard of Idemitsu Kosan Co at its gas station in Tokyo, Japan, November 4, 2015. REUTERS/Toru Hanai

(This story corrects figure in last paragraph of March 18 item to 70 billion yen from 700 billion yen)

TOKYO (Reuters) - Japanese oil refiner Idemitsu Kosan Co (5019.T) said on Friday it was looking to raise 170 billion yen ($1.53 billion) in loans to help fund the acquisition of shares in smaller rival Showa Shell Sekiyu 5002.T.

Idemitsu agreed to take over Showa Shell in November, three months after it agreed to buy Royal Dutch Shell’s (RDSa.L) one-third stake in Showa Shell for 169 billion yen. [nL3N1372KH] [nL3N10A2LM]

Idemitsu, Japan’s second-biggest oil refiner by sales, said on Friday it would raise 100 billion yen in a 60-year subordinated loan.

The loan, signed with five Japanese banks, including Development Bank of Japan, would be used to buy Showa Shell shares pending an approval for integration from Japan Fair Trade Commission, an Idemitsu spokeswoman said.

Separately, Idemitsu is looking to procure another 70 billion yen in loans to fund the acquisition, the spokeswoman added.

Reporting by Osamu Tsukimori; Editing by Stephen Coates

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