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MOF to be flexible in offering NTT shares.

TOKYO, June 27 Kyodo

The Ministry of Finance (MOF) said Wednesday it plans to be more flexible in the timing and size of public share offers in Nippon Telegraph and Telephone Corp. (NTT), a shift from the current method of infrequently offering a massive group of NTT shares at once.

With the new method, the ministry may conduct several offerings of a smaller amount of shares at a time, starting in the current fiscal year.

A ministry official said the government will be carefully monitoring the stock market to determine the appropriate timing and size of the offerings.

The ministry is also expected to accept buybacks of the shares by NTT under a treasury stock system.

Under this system, companies are permitted to buy back their own shares and hold them in reserve and is aimed at improving the supply-demand situation in the stock market.

The government last made a public offer of NTT shares last November, the sixth of its kind since 1986. The government still owns a 45.96% stake in NTT.

A review of the offering method has been called for because the government has suffered from price falls of the NTT stocks while in the process of offering new shares.

The ministry made the decision in line with a proposal made the same day by a subcommittee of the ministry's Fiscal System Council.

The proposal includes shortening the period of the public offering and selling the shares privately to some institutional investors.
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Publication:NTT Topics
Date:Jul 2, 2001
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