UFJ to allow odd-lot holders to make up full shares+.
UFJ Holdings Inc. said Friday it will allow the holders of fractions of shares, or odd lots, to pay the difference required to make them into whole shares.
Applications for converting odd lots into full shares will be accepted from next Wednesday through Aug. 31 at Nomura Securities Co. and six other brokerage houses, UFJ Holdings said.
UFJ Holdings was formed through the April 2 consolidation of the respective stocks of three of Japan's top commercial banks -- Sanwa Bank, Tokai Bank and Toyo Trust & Banking Co.
The consolidation of the trio's stocks into UFJ shares left 111,129 of UFJ's 142,458 shareholders, some 78%, as owners of odd lots, or fractions of the value of a single share.
An odd lot is a security traded for less than a normal trading unit, which is called a round lot.
In Japan, the normal trading unit is 1,000 shares, although there are dozens of exceptional high-priced stocks like those of UFJ and Nippon Telegraph and Telephone Corp. for which the standard minimum trading unit is one share.
When the shares of the three banks were delisted and consolidated into UFJ shares, UFJ swapped 1,000 Sanwa shares for one UFJ share.
At that time, accompanying consolidation transactions held the value of 1,000 Tokai shares at 0.62 of a UFJ share, while the value of 1,000 Toyo Trust shares was deemed equal to 0.46 of a UFJ share.
The deal left 111,129 shareholders who own less than a single UFJ share, the banking group said.
Tokai Bank and Sanwa Bank will merge into UFJ Bank on Jan. 15 next year. On that day, Toyo Trust will be transformed into UFJ Trust Bank.
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|Publication:||Japan Weekly Monitor|
|Date:||Jul 9, 2001|
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