TOKYO |
TOKYO (Reuters) – Nomura Securities is among four Japanese and five foreign brokerages short-listed to underwrite the government’s sale of shares in Japan Tobacco (2914.T), which could raise some $6 billion, according to Finance Ministry officials.
The shortlist includes Daiwa Securities (8601.T), SMBC Nikko Securities, Mizuho Securities, JP Morgan, Goldman Sachs, Morgan Stanley, UBS, Merrill Lynch in addition to Nomura, officials said on Tuesday.
The ministry is in the process of selecting four underwriters to manage the offering by Japan Tobacco, the world’s third-largest cigarette company, a deal expected to rank as one of Japan’s largest share sales of recent years.
Twelve investment banks applied to work on the share sale last week, five of them Japanese brokerages, people with direct knowledge of the process told Reuters.
The ministry is planning to cut its stake in Japan Tobacco to one-third from half to raise money to help fund reconstruction efforts in areas devastated by last year’s earthquake and tsunami.
(Reporting by Takaya Yamaguchi; Editing by Michael Watson)