Nintendo Share Sale: MUFG and Bank of Kyoto to Sell Stakes in Strategic Unwinding

Nintendo is reportedly preparing a major unwinding of strategic cross-shareholdings that could see MUFG Bank and the Bank of Kyoto sell significant stakes in the iconic “Super Mario” maker. According to sources familiar with the matter, the planned share sale may total approximately 300 billion yen (about $1.9 billion), marking one of the largest recent moves involving the Kyoto-based gaming giant.

The decision could come as early as Friday, two sources said, adding that Nintendo is also considering a share buyback as part of the process. The move would align with broader corporate governance reforms in Japan, where regulators and the Tokyo Stock Exchange have been urging companies to reduce cross-shareholdings and improve transparency for investors.

As of September last year, the Bank of Kyoto held a 4.19% stake in Nintendo, while MUFG Bank, Japan’s largest lender, owned a 3.62% stake through a trust bank. Both financial institutions have introduced policies aimed at reducing cross-shareholdings, reflecting a shift in Japan’s corporate landscape. A previous share sale in 2019 involving Nintendo stock totaled around 71 billion yen.

Nintendo has not commented on the reported plan, and the sources declined to be identified because the information is not yet public. Mitsubishi UFJ Financial Group declined to comment, and Kyoto Financial Group did not respond to media inquiries.

The practice of cross-shareholding, long common in Japan, involves companies holding shares in one another to strengthen business relationships. However, governance experts and international investors have criticized the system for shielding management from shareholder pressure. Similar moves are underway elsewhere, including Toyota’s reported $19 billion strategic shareholding unwind involving banks and insurers.