Sumitomo Mitsui Banking Eyes Stake in Aozora Bank

Back to Contents of Issue: February 2003


Sumitomo Mitsui Banking is thinking of buying all of the approximately 49 percent stake that finacially troubled Softbank holds in Aozora Bank.





IN BRIEF: Sumitomo Mitsui Banking is thinking of buying all of the approximately 49 percent stake that Softbank holds in Aozora Bank, formerly Nippon Credit Bank, the Japanese media reported.
If the purchase were made, Sumitomo Mitsui would turn Aozora Bank into a de facto subsidiary of Sumitomo Mitsui Financial Group, a holding company it established on December 2.

COMMENTARY: Masayoshi Son, president of Softbank, has publicly protested against the Financial Services Agency, which apparently is worried about the possibility that a foreign buyout fund would become a major shareholder of Aozora Bank. According to the Japanese media, the Cerberus Group, a major US buyout fund, and GE Capital have expressed interest in purchasing a capital stake. Financially troubled Softbank has been trying to sell its shares.

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