TOKYO • Japan’s government will pay higher fees to banks managing its sale of a US$12 billion (RM50.4 billion) stake in Japan Post Holdings Co than it did when divesting Japan Tobacco Inc (JT) four years ago, reflecting the additional challenge for underwriters, according to people with knowledge of the matter.
Brokerages will get 0.76% of the amount sold to retail investors and 0.56% offered to institutions, said the people, who asked not to be identified discussing private deal terms. That will earn them as much as ¥9.3 billion (RM353.4 million).
The overall fees work out to about 0.7%, more than the 0.5% paid by the Ministry of Finance when it sold a stake in JT in 2013, according to Bloomberg calculations. Nomura Holdings Inc, Daiwa Securities Group Inc and Goldman Sachs Group Inc are among the 61 firms working on the ¥1.3 trillion deal, the biggest single equity offering in Japan since 1999.
With about three quarters of the sale focused on households, brokerages face the costly task of targeting a large number of investors across Japan at a time of lingering market jitters over North Korea. Prospects for the postal and financial-services giant, whose shares have barely risen since listing almost two years ago, are clouded by shrinking mail volumes and low interest rates.
Nomura and Daiwa will manage the bulk of the offering, followed by Goldman Sachs, Mitsubishi UFJ Morgan Stanley Securities Co, Mizuho Securities Co and SMBC Nikko Securities Inc, people with knowledge of the matter said earlier this week.
Brokerages in Japan tend to accept lower fees for underwriting government share sales because of the prestige attached to the transactions. — Bloomberg