Responding to the recent media reports, Aflac Inc. (AFL) confirmed Thursday that it is engaged in discussions with Japan Post Holdings Co., Ltd. regarding a potential minority investment in Aflac achieved through open market purchases.
The discussions do not involve Aflac or any of its subsidiaries becoming a member of the Japan Post Group. No assurance can be given that any transaction will occur or agreement will be reached, Aflac said.
Aflac said it is not otherwise in a position to comment on the terms, timing or form of any transaction.
Earlier today, Nikkei Asian review reported that Japan Post Holdings will spend about 300 billion yen or $2.64 billion to acquire 7% to 8% of U.S. insurer Aflac, with plans to make it an affiliate after four years.
Japan Post Holdings hopes to approve the plan by the end of the month and complete the share purchase by the end of next year. The two companies have agreed not to dispatch executives to each other or play a role in each other’s management, the report said.