SMBC, DBJ to take combined 33.4 percent stake in Skymark: sources

May 19
9:24 AM 2015

Sumitomo Mitsui Banking Corp and the Development Bank of Japan are set to take a combined 33.4 percent stake in bankrupt budget carrier Skymark Airlines Inc (SKALF.PK), giving them veto power over major decisions, sources familiar with the plan said.

ANA Holdings Inc (9202.T) plans to acquire a 16.5 percent stake, said the sources, who declined to be identified because an announcement has not been made.

Last month, ANA said it would acquire a stake of up to 19.9 percent and private equity firm Integral Corp would take 50.1 percent, while unnamed entities would hold the remainder.

The investment gives ANA access to highly coveted landing rights at Tokyo's Haneda airport, where it already controls more than half of the landing slots, strengthening its lead over Japan Airlines Co Ltd (9201.T).

The sources told Reuters that SMBC and the DBJ would buy the stake through an investment fund that they plan to establish.

The Nikkei business daily said the lenders wanted to secure enough voting rights to veto key decisions, given the risks involved in the turnaround efforts at Skymark, which filed for bankruptcy protection in January.

ANA could not immediately provide comment. Officials at SMBC, a unit of Sumitomo Mitsui Financial Group Inc (8316.T), and the DBJ were not immediately available.

ANA shares were up 0.2 percent and SMFG was nearly flat on Tuesday morning in Tokyo, versus a 0.3 percent rise in the broader market .TOPX.

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