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UPDATE 3-Japan finance minister to meet Japan Post CEO over Toll writedown - source

Published 28/04/2017, 06:29 pm
© Reuters.  UPDATE 3-Japan finance minister to meet Japan Post CEO over Toll writedown - source
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* Japan Post's response to $3.6 bln Toll writedown on agenda

* Govt owns 80 pct stake in Japan Post

* Govt plans to raise 4 trln yen from second share sale (Updates with details on timing, and adds Japan Post comment.)

By Yoshifumi Takemoto

TOKYO, April 27 (Reuters) - Japan's finance minister intends to meet the chief executive of Japan Post Holdings Co 6178.T over the coming weeks to discuss the state-controlled company's shock $3.6 billion writedown on its Australian logistics arm, Toll Holdings Ltd, a source said.

The source, who has direct knowledge of the finance minister's schedule, said Taro Aso and Japan Post's Masatsugu Nagato would focus on the company's response to the impairment charge, booked just two years after the acquisition of Toll.

The source said the two will see each other at a gathering in the second-half of May, but a one-on-one meeting has not been arranged.

The 2015 cash deal was widely criticised at the time. Analysts and bankers questioned the rich premium as Japan Post rushed to seal its first overseas transaction just months ahead of its initial public offering.

Japan Post announced the 400 billion yen ($3.59 billion)writedown on Toll earlier this week. The hit pushed it to an annual loss of 40 billion yen for the year ended in March.

News of the writedown comes at a sensitive time for Tokyo, which is planning the sale of additional government shares in Japan Post. Tokyo, which still controls 80 percent of the company, aims to raise around 4 trillion yen through that sale. divestment is partly aimed at funding the rebuilding of areas hit by Japan's 2011 earthquake and tsunami. No date has been set, but Tokyo has named six investment banks to serve as underwriters. government sold about $12 billion worth of shares in Japan Post and its two financial units in the initial public offering.

A Japan Post official said he had not heard about Aso's intention to meet with Nagato. A finance ministry spokesman also said he was not aware of any meeting. ($1 = 111.3400 yen)

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