JAPAN: Tokyo Metropolitan Government is likely to begin selling off its shares in Tokyo Metro in the 2024 financial year, Governor Yuriko Koike said on January 26.
The current Tokyo Metro company was founded on April 1 2004 as part of Prime Minister Junichiro Koizumi’s policy to convert statutory companies into joint-stock companies. The national government had a 53·4% stake and a rapid privatisation was envisaged. However, the remaining 46·4% is owned by Tokyo Metropolitan Government, which in the past has wanted to retain public ownership and so despite various proposals the structure has remained unchanged.
The Ministry of Land, Infrastructure, Transport & Tourism’s Council for Transport Policy proposed a stock market listing in 2021, with the money raised to be used to finance construction of an extension of Line 8, the Yurakucho Line, between Toyosu and Sumiyoshi.
The Metropolitan Government agreed, and in May 2022 the Ministry of Finance selected Nomura, Mizuho and Mitsubishi UFJ Morgan Stanley as lead underwriters with Goldman Sachs and Bank of America for overseas sales.
The Council for Transport Policy has recommended that for the time being 50% of the shares should be sold, and 50% should remain in the hands of the national and city governments.
In the year to March 2023 Tokyo Metro reported operating revenue of ¥345·3bn and net income of ¥27·7bn.
