Sojitz Announces Shareholding Policy Calling for Reduction of Cross-Shareholdings
Mar. 11, 2021
Sojitz Corporation announces that it will accelerate the reduction of cross-shareholdings as part of its shareholding policy under its next medium-term management plan set to begin in April 2021. Sojitz’s cross-shareholdings totaled JPY89.6 billion as of December 31, 2020, and the Company aims to achieve a 50% reduction in the amount of cross-shareholdings by March 31, 2024.
In accordance with Japan’s Corporate Governance Code, Sojitz previously established policies for cross-shareholdings under which all holdings are reviewed through annual assessments to determine the value of retaining these holdings. Accordingly, Sojitz has steadily reduced holdings of both listed and unlisted shares as called for by its present shareholding policy.
In recent years, cross-shareholdings have been drawing greater attention from the market. Sojitz seeks to further divest from cross-shareholdings as part of its efforts to raise capital efficiency over the course of the next medium-term management plan.
As of December 31, 2020, Sojitz’s holding of listed shares represented 14.5% of total equity, amounting to JPY617.6 billion. Sojitz aims to reduce these holdings by half, bringing the percentage of cross-shareholdings to total equity to 7%.*
* Calculations based on total equity as December 31, 2020