Reuters: Regulatory News: UPDATE 1-Nomura excluded from $6 bln Japan Tobacco share sale

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UPDATE 1-Nomura excluded from $6 bln Japan Tobacco share sale Jun 18th 2012, 09:25 Mon Jun 18, 2012 5:25am EDT * Nomura had admitted to its employees leaking inside information * JPMorgan, Goldman, Daiwa and Mizuho picked for share sale TOKYO, June 18 (Reuters) - Japan has excluded Nomura Holdings, the nation's biggest broker and top underwriter which this month admitted to leaking non-public information, from handling the sale of government shares in Japan Tobacco in a deal worth around $6 billion. The Ministry of Finance said in a statement on Monday it had chosen JPMorgan Chase & Co, Daiwa Securities, Goldman Sachs and Mizuho Securities as underwriters for the share sale in Japan Tobacco, the world's third-largest cigarette company. The selection of underwriters for what is expected to rank as one of Japan's largest share sales in recent years comes after Nomura said its employees were found to have leaked inside information in previous share offerings by some other companies. Nomura has been under investigation by Japanese authorities regarding insider trading in share sales of Mizuho Financial Group Inc, oil explorer Inpex Corp and Tokyo Electric Power Co. The Japan Tobacco share sale would handily surpass a 152 billion yen ($1.9 billion) sale of shares by Mazda Motor Corp in March, which so far stands as Japan's largest equity offering this year. The deal is seen as prestigious, although revenue from it is not expected to be attractive. Underwriting fees of just 1 percent of the offering are expected to be generated from the deal, much lower than those paid by private companies. Nine investment banks, including Nomura, were shortlisted earlier this month from 12 banks that submitted bids. "The selection is just part of the preparation for the sale and actual timing or size of the sale has not been decided," the ministry statement said. Nomura declined to comment on Monday about its exclusion from the deal. The ministry is planning to cut the government's 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. Link this Share this Digg this Email Reprints

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