Shareholders of Tokyo Metro Co. are considering the possibility of making the subway operator a publicly traded company on the Tokyo Stock Exchange, according to sources familiar with the matter. This move could happen as early as October.
Currently, Tokyo Metro is predominantly owned by the Japanese government, holding a 53.4 percent stake, while the remaining 46.6 percent is owned by the Tokyo metropolitan government.
Both the central and metropolitan governments have plans to sell their shares in Tokyo Metro simultaneously and in equal proportions. The aim is to reduce their combined stake in the company to 50 percent.
The sale of shares by the central government is required by law, as they are obligated to use these proceeds for financing bond redemption related to reconstruction efforts following the devastating earthquake and tsunami that occurred in March 2011.
By taking Tokyo Metro public, it would allow for greater transparency and potentially attract more investors who are interested in participating in Japan’s transportation sector. This move could also provide an opportunity for shareholders to benefit from potential future growth and profitability of Tokyo Metro.
However, it should be noted that no final decision has been made regarding this matter at this time. Shareholders will continue discussions and evaluate various factors before reaching a conclusion on whether or not to proceed with making Tokyo Metro a publicly traded company on the stock exchange.