Nintendo plans ¥300bn share sale as major investors unwind stakes

(Sharecast News) - Video games giant Nintendo was reportedly preparing a ¥300bn £1.42bn) unwinding of its strategic shareholdings, with major investors MUFG Bank and the Bank of Kyoto expected to sell part of their stakes. According to Reuters, Nintendo was planning a sale that could be approved as soon as Friday, alongside a share buyback.

Both MUFG and the Bank of Kyoto have been working to reduce cross‑shareholdings, a long‑standing Japanese practice in which companies hold each other's shares to cement business ties.

Regulators and the Tokyo Stock Exchange have been encouraging firms to unwind such positions, which have been criticised by governance specialists and overseas investors for insulating management from shareholder pressure.

The Bank of Kyoto held 4.19% of Nintendo as of September, while MUFG held 3.62% via a trust bank. A previous sale in 2019 involving the same banks totalled around ¥71bn (£337.6m).

As of 1110 GMT, Nintendo shares were up 2.95% at ¥8,995 each.







Reporting by Iain Gilbert at Sharecast.com