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J Trust Tumbles 25% as Consumer Lender Withdraws Profit Forecast

Nov. 11 (Bloomberg) -- J Trust Co. fell the most in more than three years in Tokyo trading after the Japanese consumer lender withdrew its annual profit forecast.

The shares dropped by the daily limit of 400 yen, or 25 percent, to 1,210 yen at the close after being untraded in regular hours on the Tokyo Stock Exchange due to an excess of sell orders. That’s the biggest decline since July 22, 2010.

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 finance acquisitions.

Shares of J Trust have now lost 66 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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