Nintendo announced a $1.9 billion share sale as major Japanese banks unwind long-standing strategic holdings in the gaming giant.
The move will see institutions including MUFG Bank and the Bank of Kyoto offload shares worth roughly 290 billion yen at Friday’s closing price.
Kyoto-based Nintendo, creator of franchises such as Super Mario, said it will repurchase up to 100 billion yen in shares.
The buyback could cover as many as 14 million shares, partially offsetting the impact of the large-scale divestment.
Nintendo shares pared earlier gains but still closed nearly 3% higher. Kyoto Financial Group surged almost 10% following the news.
Resona Bank, part of Resona Holdings, and gaming company DeNA will also sell stakes. MUFG will divest shares held via a trust bank.
Japan’s regulators and the Tokyo Stock Exchange have pushed firms to unwind cross-shareholdings, a practice criticized for weakening corporate governance and insulating management.
