Nikko AM postpones share sale

Nikko Asset Management has cancelled plans for a public share offering on the Tokyo Stock Exchange, citing weak market conditions and the escalating sovereign debt crisis in Europe. Nikko had hoped to raise about $600m.

Nikko’s Board of Directors decided to cancel the secondary offering of shares of its common stock and to suspend the related listing process of its shares, planned for December 15, at a meeting held on December 2. The Board had resolved to list the shares at a meeting held two weeks previously, on November 16.

Sumitomo Mitsui Trust Holdings, the main shareholder of Nikko Asset, said in a statement: “After we launched the offering, the debt crisis in Europe expanded and market conditions worsened more than we had expected.” Sumitomo Trust, a unit of Sumitomo Mitsui, bought Nikko Asset from Citigroup in 2009 for $1.45bn.

In a statement, Nikko said it “remains committed to the belief that, as a publicly listed asset management company, it can contribute to the development of the Asian asset management industry and help millions of Asian investors grow their wealth. 

“However, as there is no need for the Company to raise cash through an immediate listing, the Company has decided that it is appropriate to suspend the listing during this time of market volatility. As such, the Company will seek to resume its listing plans when market conditions are more stable.” 

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