Sony Group (TYO:6758) aims to spin off its financial arm, Sony Financial Group (SFGI), by directly listing it on the Tokyo Stock Exchange later this year, according to its financial services documents dated May 29 on its website.
This move will involve distributing SFGI shares to existing Sony shareholders as dividends in kind.
SFGI shares are slated to begin trading on the TSE on Sept. 29, the ex-dividend date, through a direct listing process that bypasses primary or secondary offerings.
This marks only the second instance of a direct listing in Japan, though it's a common practice internationally.
As a result of the spin-off, Sony shareholders as of Sept. 30 will receive one SFGI share for each Sony share, thereby holding stock in both the core Sony Group and the newly listed Sony Financial Group.
Upon listing, the Tokyo Stock Exchange will determine and announce the initial center price, with daily price limits set around it.
Post-spin-off, Sony plans to retain slightly less than a 20% stake in SFGI, shifting its status from a consolidated subsidiary to an equity-method affiliate.
Furthermore, SFGI intends to repurchase approximately 100 billion yen worth of its shares by March 2027.
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