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Orix to acquire Next Capital stake in Japan's Ashikaga

  • Andrew Woodman
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Japanese financial group Orix will become the second-largest stakeholder in Ashikaga Holdings, the parent of Ashikaga Bank, providing an exit for Next Capital Partners.

Financial details were not disclosed.

Currently, Nomura Financial Partners, a subsidiary of Nomura Holdings, is Ashikaga's number one shareholder with 37% of voting rights. According to a release, Orix's stake will come to around 12%, giving both Orix and Nomura and joint stake of around 50%. According to Nikkei, Orix already has a stake in the company indirectly having acted as an LP to Next Capital.

Ashikaga Bank was nationalized after it went bankrupt in 2003. In 2008, Nomura and Next bought the bank and introduced a restructuring plan. Its loan balance had recovered to JPY4 trillion ($38.5 billion) by the end of March, while deposits neared JPY5 trillion, returning to pre-bankruptcy levels. It relisted on the first section of the Tokyo Stock Exchange in December.

Japan's Financial Services Agency (FSA) has warned that the environment for regional banks will remain difficult as the population shrinks and has urged radical reforms through consolidation.

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