Japan Hotel Operator to Become Top Investor in Toyama Bank
Japanese hotel operator Plan Do See Inc. is taking a stake in regional lender Bank of Toyama Ltd. to become its biggest shareholder and collaborate in hospitality business in the area.
Under the deal, the unlisted company is acquiring as much as 5% of the Toyama prefecture-based bank, the lender said in a stock exchange filing on Thursday.
Japanese authorities are trying to revitalize the regional bank industry, which is struggling to cope with a shrinking population. Local lenders need to consider various options to deal with the challenge, including by consolidating and forming alliances, Financial Services Agency Commissioner Yutaka Ito said in an interview in August.
Bank of Toyama is the smallest of the three banks based in the prefecture in central Japan. It reported net income of ¥629 million in the six months ended Sept. 30, up 17% from a year earlier.
Tokyo-based Plan Do See operates hotels, wedding venues and restaurants throughout Japan, including the Aoyama Grand Hotel and the Oriental Hotel Kobe. The company has a track record of revitalizing local areas, such as by utilizing old buildings designated as cultural properties.
By Taiga Uranaka and Hideki Suzuki