Toll acquisition ‘failure’ to affect Japan Post stock sale

A $15 billion sale of Japan Post stock could be negatively affected by its purchase of Toll Holdings, with fund managers saying the company ‘lacks growth potential’.
According to Reuters, Japan’s government said it will sell US$12 billion ($15 billion) worth of Japan Post Holdings stock in an announcement that fund managers reportedly gave a lukewarm reception.
“The company lacks growth potential appeal,” Kazuo Okabe, General Manager, Fukoku Capital Management, told Reuters. “I don’t think there will be strong demand from actively managed funds.”
Even after the ¥400.3 billion ($4.8 billion) writedown, a ruling-party lawmaker told Reuters that Japan Post needs to make more acquisitions in order to grow.
“Japan Post cannot expect to realise strong growth on its own, it needs to pursue acquisitions. Management should not be timid about them even after the failure of the Toll deal,” Reuters quoted the source.
According to Reuters, Japan Post’s chief executive has said the firm can achieve growth through organic means alone.