Meiji Yasuda Buys U.S Insurer StanCorp for $5 Billion, Nikkei Down 0.7%

Hiruki Nakamura
24 Jul, 2015
New York City

Investors in Tokyo sold stocks and focused on domestic earnings after manufacturing sector growth outlook was weak in China and overseas markets declined. Meiji Yasuda agreed to acquire the U.S. based insurance group for $5 billion. Softbank prepares for a bond offering next week.

[R]4:30 PM Tokyo – Investors in Tokyo sold stocks and focused on domestic earnings after manufacturing sector growth outlook was weak in China and overseas markets declined. Meiji Yasuda agreed to acquire the U.S. based insurance group for $5 billion. Softbank prepares for a bond offering next week.[/R]

Market indexes in Tokyo eased after weaker-than-expected manufacturing outlook in China and a weakness in overseas markets.

The Nikkei 225 Stock Average slumped 139.42 or 0.7% to 20,544.53 and the broader Topix index slid 9.02 to 1,655.86. For the week, Nikkei 225 jumped 3.9%.

The yen closed at 123.91 against a dollar.

Stocks in Review

M3 Inc rose 0.2% to 2,655 yen after the online medical services provider reported net sales in the first-half ending in June climbed 26.5% to 15.53 billion yen from 12.28 billion yen in a year ago period.

Net income in the quarter soared 36.6% to 3.42 billion yen compared to 2.50 billion yen and diluted earnings per share increased to 9.21 yen from 6.93 yen the same period a year ago.

For the year, the company forecasted net sales to jump 22.7% to 63 billion yen and net income gain 8% to 5.20 billion yen.

Jafco Co., Ltd gained 1.9% to 5,820 yen after the investment consulting services provider said net sales in the first-quarter ending in June soared 90.2% to 20.07 billion yen from 10.55 billion yen in a year ago period.

Net income in the quarter surged 96% to 10.48 billion yen compared to 5.35 billion yen and diluted earnings per share jumped to 236.28 yen from 120.58 yen the same period a year ago.

Meiji Yasuda Life Insurance Co, the Japan’s third-largest privately held life insurance group agreed to acquire the U.S.-based StanCorp Financial Group Inc. for about 624.6 billion yen or $5 billion and expand in overseas market.

Meiji agreed to breakup fee of $90 million.

SoftBank Group Corp slipped 0.7% to 6,952 yen after the mobile communication services provider plans to issue series of new corporate bond in the next week for as much 533.7 billion yen for debt repayment and to acquire working capital.

TV Tokyo Holdings Corporation jumped 3.7% to 1,941 yen after the broadcasting company’s major shareholder Nikkei agreed to acquire the U.K.-based media groups Financial Times group for 160 billion yen or £844 million or $1.3 billion in cash from Pearson Plc.

Nikkei Inc holds 31.45% stake in TV Tokyo.