Japan’s Shinsei Bank shares surge after report SBI considering delisting bank

TOKYO (Reuters) -Shares in Japanese mid-sized lender Shinsei Bank Ltd soared as much as 16% early on Thursday after a report that financial group SBI Holdings may delist the lender after raising its current 48% stake to majority control.

Following the Kyodo News report, SBI said in a statement that it is not true that the company is specifically considering delisting Shinsei. As of 0150 GMT, Shinsei shares were up 8.9% at 2,336 yen, putting it on track for its biggest one-day gain in just over a year.

In a separate statement, Shinsei said that while it is true that the bank is exploring various initiatives with SBI to beef up earnings, it is “not a fact” that it is working on the concrete step of delisting.

The statements came after the Tokyo Stock Exchange issued an alert concerning Shinsei, flagging “unclear information” about it going private.

SBI’s chief executive has said in the past that a delisting was an option for Shinsei, worth about 440 billion yen ($2.93 billion) by market capitalisation at the close on Wednesday, in order to help it return $3 billion in public funds still owed to the government.

($1 = 149.9200 yen)

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