Bank of Ikeda, Senshu Bank to fuse managements Oct. 1.

OSAKA, May 25 Kyodo

The Bank of Ikeda and Senshu Bank, two regional banks based in Osaka Prefecture, said Monday they have agreed to implement a management integration on Oct. 1 under a new holding company.

The two lenders approved the motion to integrate their managements under the holding company, Senshu Ikeda Holdings Inc., at respective board meetings earlier in the day, the two said in a joint press release.

Under the approved integration scheme based on share allocations to the two lenders' current shareholders, the holding company will own 100 percent of the two lenders, the banks said.

The outright merger of the two lenders will be implemented in about six months after the formation of the holding company.

At present, the Bank of Ikeda based in Ikeda is owned 3.43 percent by the Bank of Tokyo-Mitsubishi UFJ, which is the parent of Senshu Bank based in Kishiwada with a controlling 67.26 percent stake.

The two lenders said the integration is designed to expand their business foundation and provide credits to regional borrowers more stably, while establishing the independence of the envisioned holding company's management.

Under the stock allocation scheme, holders of every one share of common stock in Bank of Ikeda will be given 18.5 common shares in the holding firm, while holders of every one share of common stock in Senshu Bank will be allocated one common share in the holding firm, the two said.

The scheme will reduce the Bank of Tokyo-Mitsubishi UFJ's stake in the holding company to some 36 percent on a voting rights basis.

After this, the bank will discharge any shares in the holding company beyond a 20 percent stake line by next March 31 in line with an agreement with the two lenders, they said.

On top of this, the core bank of Mitsubishi UFJ Financial Group Inc. will disperse the resultant 20 percent interest among MUFG group companies, including itself.

After this stage, the bank will further cut the combined stake of itself, other MUFG subsidiaries and close MUFG business allies in the holding firm to less than 15 percent in line with the accord, the two lenders said.

The holding company will list its stock on the Tokyo Stock Exchange and the Osaka Securities Exchange on Oct. 1.

Prior to the listing, the Bank of Ikeda will delist its stock from the both bourses on Sept. 25, while Senshu will remove its stock from the OSE on the same day.

Bank of Ikeda President Moritaka Hattori will assume the presidency of the holding company, while Senshu Bank President Norimasa Yoshida will assume its chairmanship, they added.