Japan Airlines (JAL) announced it will propose the privatization of shares of the company AGP at the shareholders meeting scheduled for June.
They plan to consolidate the shares at a ratio of 1,235,700 to 1, making JAL, Japan Airport Terminal, and ANA Holdings the sole shareholders, thereby privatizing the shares. The shareholding ratio of these three companies is 73.26%.
The expected payment for fractional shares to minority shareholders is stated to be 1,550 yen per share, which exceeds the simple average closing price of 1,115 yen over the past month and the all-time high of 1,509 yen.
AGP was established in December 1965 as Japan Airport Power. It supplies power to aircraft parked at major domestic airports, maintains airport facilities, and sells products. 26% of AGP’s revenue comes from JAL.
JAL stated that by refraining from dialogue between the three major shareholders and AGP, it has become difficult to hold even general discussions as a shareholder about AGP’s management policy and business strategy. All proposals concerning executive compensation were rejected at the shareholders meeting in June 2024. In early February this year, JAL approached Japan Airport Terminal and ANA Holdings about privatizing AGP, initiating discussions. Although repeated requests were made to AGP to start discussions, AGP has not yet agreed.
Japan Airport Terminal and ANA Holdings agree with the shareholder proposal, and although post-privatization shareholding ratios are undecided, neither plan to become a controlling shareholder independently.
Notice
This article was generated using automatic translation by GPT-4 API. The translation may not be accurate.
