Japan Post Holdings Co. outlined plans to spend 1.96 trillion yen ($16 billion) to expand its business over the next three years as it seeks to attract investors for an initial public offering.
The figure includes 800 billion yen for strategic investments, of which 620 billion yen is for the purchase of Australia’s Toll Holdings Ltd. that was announced in February, a midterm business plan showed Wednesday. The rest is for spending on systems, facilities and real estate development.
The state-owned mail, banking and insurance giant said it’s seeking acquisitions in Europe, Asia and the U.S. to become a leading global logistics company. It targets a dividend payout ratio of more than 50 percent after the IPO, which is slated for later this year, the plan showed.
“We want to continue our investments aggressively,” Chief Executive Officer Taizo Nishimuro said at a news briefing in Tokyo. “It’s also possible for the financial units to make investments.”
Japan Post targets net income of 450 billion yen for the year ending March 2018, according to the statement. That may include 330 billion yen from the banking unit and 80 billion yen from the life insurance arm. The projection is up from the 420 billion yen in profit expected for the year ended March 31.
It reiterated plans to diversify its portfolio to riskier assets while still investing in Japanese government bonds.