Local News

Land Ministry Eyes Taking JR Kyushu Public in 2016

The Ministry of Land, Infrastructure, Transport and Tourism has announced plans to take JR Kyushu public in fiscal 2016. With the listing on the stock exchange, the company will not need to repay the ¥387.7 billion in so-called management stabilization funds it received from the government when the national railway conglomerate was privatized in 1987. Instead, the funds will be used to shore up JR Kyushu’s financial standing before the listing. The company will be the first of the three railway companies outside of Honshu, all of which were granted management stabilization funds, to go public. The land ministry plans to submit a bill regarding JR Kyushu’s stock listing to the Diet by the end of the month. A final version of the bill should be ready sometime this month after negotiations with the Ministry of Finance, which has requested the repayment of the management stabilization funds. The land ministry plans to request that JR Kyushu keep underperforming train lines open even after it goes public, replicating measures taken when JR East and two other JR companies were listed.Source: Nishinippon Shimbun 1/7

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Published: Jan 9, 2015 / Last Updated: Apr 1, 2016

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