Resona will acquire the remaining 48.9% stake in the Osaka-based bank holding company for $4.76 per share


A branch of Resona Bank in Toyonaka, Japan. (Credit: Suikotei/Wikimedia Commons)

Japanese bank holding company Resona has announced that it will take full ownership of Kansai Mirai Financial Group for JPY66.14bn ($630m).

In this connection, Resona will acquire the remaining 48.9% stake in Kansai Mirai through a tender offer and a share exchange process.

Kansai Mirai, which is the owner of Kansai Mirai Bank, is based in Osaka. Incorporated in November 2017, the bank holding company has a capital of JPY29.5bn ($280m).

The Kansai Mirai Bank was established in April 2019 following the merger of Kansai Mirai Financial Group’s fully-owned subsidiaries Kansai Urban Banking and Kinki Osaka Bank.

As per the terms, Resona will offer JPY500 ($4.76) per share to acquire the remaining shares it didn’t own before in the Osaka-based group.

The tender offer which has been launched will be available till 9 December 2020.

Shareholders who do not accept the tender offer will be issued 1.42 Resona shares for each of the shares they hold in Kansai Mirai.

Sumitomo Mitsui Financial Group, which holds a stake of 23.5% in Kansai Mirai, has agreed to sell its shares as part of the deal.

Resona stated: “Kansai Mirai Financial Group’s shareholders will own the Resona Holdings Shares so that they can enjoy the results of further enhancement of the corporate value of Resona Holdings and Kansai Mirai Financial Group together with existing shareholders of Resona Holdings.

“This will be achieved by steadily implementing various business strategies, including measures to realize group synergy, such as re-building the business base, optimizing the Kansai channel network, and accelerating the downsizing of the headquarters’ function in the entire Resona Group.”

Once the transaction is completed, Kansai Mirai will be delisted from the Tokyo Stock Exchange with the last trading day to be 29 March 2021.