The Japanese government has habitually confirmed rumours that it’s set to sell its multitude of shares within Nintendo Co.
This prolific move by the government has seen share prices drop by an opportune 2.7% which has subsquently seen the shares valued in at an exorbitant 67.3 billion yen ($557 million).
The Banks’ Shareholdings Purchase Corp., a government- controlled body, in 2002 started buying shares of companies from banks to prevent a large number of stock being released to the market at once. The government in 2001 required lenders to cut their cross-shareholdings in customers — a strategy adopted after World War II to deepen business relationships — to avoid any impact of share price fluctuations on the stability of banks.
Nintendo initiated the sales by approaching the corporation, Ken Toyoda, the company’s spokesman said by telephone. The company is looking to increase the number of individual shareholders to increase liquidity, as products such as its DS handheld player and Wii consoles spur interest in its stock.