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J Trust Poised to Fall as Consumer Lender Withdraws Profit Goal

J Trust Co. (8508), the Japanese consumer lender whose shares have tumbled more than 50 percent since May, is poised to fall by the daily limit in Tokyo trading after it withdrew its profit forecast.

The shares were untraded as of 12:57 p.m. in Tokyo, with offers to buy at 1,210 yen, 25 percent lower than the previous closing price of 1,610 yen. There were more than five sell offers for every bid, according to data compiled by Bloomberg.

J Trust last week pulled its forecast for net income of 15 billion yen ($151 million) for the year ending March, saying takeovers that it’s seeking after raising funds in a share sale may “significantly” affect earnings. The company completed Japan’s biggest-ever rights offer in July, raising 97.7 billion yen to fund acquisitions.

Shares of J Trust have lost 55 percent since May 14, when it released plans for the equity offering. That’s the worst performance among the 561 companies on the Tokyo Stock Exchange’s second section.

J Trust, which bought bankrupt Japanese consumer lender Takefuji Corp. last year, didn’t specify acquisition targets in the Nov. 8 statement on its profit projection. The company is interested in Southeast Asian banks and domestic credit card companies, Chief Executive Officer Nobuyoshi Fujisawa said in an interview in August.

Net income fell about 85 percent to 1.1 billion yen in the six months ended Sept. 30, J Trust said in the statement. It’s scheduled to report first-half earnings on Nov. 13.

The consumer lender made an unsuccessful preliminary offer for failed Japanese game maker Index Corp. earlier this year.

To contact the reporter on this story: Monami Yui in Tokyo at myui1@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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