Investments · Insurance
Japan Post to buy about 7% of Aflac for about $2.4 billion
- Investor
- Japan Post Holdings (Tokyo)
- In
- Aflac Incorporated, Columbus, Georgia
- Value
- About $2.4B for about 7%
- Status
- Announced on December 19, 2018; share purchases began in 2019.
- Date
- 2018-12-19
Japan Post Holdings agreed to acquire about 7% of Aflac Incorporated, the Columbus, Georgia insurer, through a trust buying shares in the US market. CNBC put the cost at about $2.4 billion. After four years the shares were to carry enhanced voting rights, capped at 20% of the total.
Why it matters
The stake strengthened a sales alliance in which Aflac's cancer insurance is sold through Japan's post offices, and kept the shares in friendly hands.
Terms of the stake
Under the agreement, a trust holds the shares with Japan Post as economic beneficiary, buying on the open market or in private block trades in the US. Ownership is capped at 10%, with a lock-up and a standstill. After 48 consecutive months the shares qualify for Aflac's 10-for-1 voting rights, but the trustee's votes are limited to 20% of the total. Japan Post takes no board seat.
A partnership since 2008
Aflac and Japan Post began working together in 2008. Aflac's cancer products are sold at more than 20,000 post offices and at Japan Post Insurance's 76 directly managed sales offices. The deal required regulatory approvals in Japan and the US, expected in the second half of 2019.
Sources
Kakehashi M&A News home
