By Kosaku Narioka


Honda Motor plans to offer shares worth billions of dollars currently held by Japanese banks and insurers as part of efforts to broaden its shareholder base and improve discipline over management.

The Japanese automaker said Thursday that it plans to offer about 259.9 million shares held by Japanese banks and insurers. The offering is valued at about 465.44 billion yen ($2.88 billion) based on the latest closing price.

Honda said the offering price would be determined between July 17 and July 22. Shares closed 3.0% higher at Y1,791.0 on Thursday.

An additional 39.0 million shares may be offered, depending on demand, the automaker said.

Financial regulators have pressed Japanese companies to reduce their stakes in other listed local companies to improve corporate governance. Advocates for a reduction in cross-shareholdings say banks and insurers that hold stakes in carmakers, for instance, may not oppose bad management decisions out of fear of losing their lending or insurance businesses.

Honda said Thursday that 10 banks and insurers, including Mizuho Bank and Tokio Marine & Nichido Fire Insurance, plan to sell their shares in the company.

The automaker said in May it would buy back up to Y300.0 billion of its shares by the end of March 2025 as part of efforts to shore up its share price, which is trading below book value. It hasn't made any purchases under the program.

In May, Toyota Motor also said it would buy back up to Y1 trillion of its shares by the end of April 2025, partly to respond to any divestment plans from its stakeholders.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

07-04-24 0512ET