Japan Is Said to Pay Higher Fees for Postal Share Sale Than JT

Sep 13, 2017 3:12 am ET

(Bloomberg) -- Japan’s government will pay higher fees to banks managing its sale of a $12 billion stake in Japan Post Holdings Co. than it did when divesting Japan Tobacco Inc. four years ago, according to people with knowledge of the matter.

Brokerages will get 0.76 percent of the amount sold to retail investors and 0.56 percent offered to institutions, said the people, who asked not to be identified discussing private deal terms. That will earn them as much as 9.3 billion yen ($84 million).

The overall fees work out to about 0.7 percent, more than the 0.5 percent paid by the Ministry of Finance when it sold a stake in JT in 2013, according to Bloomberg calculations. Nomura Holdings Inc., Daiwa Securities Group Inc. and Goldman Sachs Group Inc. are among the 61 firms working on the deal.

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