THE WALL STREET JOURNAL: Corp Shareholders To Sell Showa Shell Sekiyu Stock In Dec: “Showa Shell Sekiyu K.K. said Friday seven financial institutions, including Mizuho Corporate Bank and Tokio Marine & Nichido Fire Insurance, will offer 9.29 million shares in the oil refiner to the market in December” (ShellNews.net) 26 Nov 04
DOW JONES NEWSWIRES
November 26, 2004 2:12 a.m.
TOKYO -- Showa Shell Sekiyu K.K. (5002.TO) said Friday seven financial institutions, including Mizuho Corporate Bank and Tokio Marine & Nichido Fire Insurance, will offer 9.29 million shares in the oil refiner to the market in December.
Mizuho Securities, one of the underwriters of the offering, also has a green shoe option allowing it to offer an additional 1.0 million shares in the event of exceptional demand.
The 9.29 million shares amount to 2.6% of the company's outstanding shares, a spokesman at Showa Shell Sekiyu said. If the overallotment is exercised, the percentage of shares to be offered will be 2.7%.
The spokesman said Showa Shell hopes to boost the liquidity of its shares and increase the number of its shareholders, particularly among individuals who may also be customers of its gas stations.
A large portion of Showa Shell Sekiyu shares has traditionally been held by its stable shareholders, with Royal Dutch/Shell Group (RD) until recently controlling 50% of the company.
Royal Dutch/Shell's stake in the Japanese oil refiner dropped to 40.04% earlier this year, when Saudi Arabian Oil Co. (SOI.YY), or Saudi Aramco, bought a 9.96% stake. The move was part of efforts among the three companies to strengthen their ties.
In Japan, banks and insurance companies are continuing their efforts to reduce their shareholdings, particularly those mutually held, or "cross-held," by corporate customers.
Showa Shell said an offering price for the shares will be set sometime between Dec. 13 and Dec. 15, and that the shares will be delivered seven days later.
-By Natsuo Nishio, Dow Jones Newswires; 813-5255-2929;
-Edited by Kirsty Mackenzie