Among the institutions expected to participate are Mitsubishi UFJ Financial Group and Kyoto Financial Group. A decision could come as soon as Friday, two sources said, News.Az reports, citing Reuters.
As of September last year, the Bank of Kyoto held a 4.19% stake in Nintendo, while MUFG Bank, Japan’s largest lender, had a 3.62% stake via a trust bank.
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Both financial groups have policies aimed at reducing cross-shareholdings, a long-standing corporate practice in Japan where companies hold shares in one another to strengthen business ties.
In addition to the planned share sale, Nintendo is also considering a share buyback, sources said. The company has not commented publicly on the report.
Nintendo shares trimmed earlier gains but were still up 2.4% in Tokyo trading. Meanwhile, shares of Kyoto Financial Group jumped 9% following the news.
Japanese regulators and the Tokyo Stock Exchange have been pushing companies to unwind cross-shareholdings in recent years, arguing that the practice can shield management from shareholder pressure.
Earlier this week, Toyota Motor Corporation was also reported to be planning a large-scale reduction of strategic holdings, highlighting a broader shift in Japan’s corporate governance landscape.
If confirmed, the move would mark another significant step in Japan’s efforts to modernize corporate structures and increase transparency for investors.
