Japan Post Holdings Co. Ltd. will be buying a big stake in Aflac Inc., but not a stake that’s all that big.
Japan Post plans to buy about 7% of Aflac’s outstanding shares of common stock through a trust, and enter into a strategic alliance agreement with Aflac, Aflac announced today.
When news about the Japan Post investment in Aflac stock surfaced last week, some reports suggested that Japan Post might be acquiring control over Aflac.
(Related: Japan Post May Invest $2.6 Billion in Aflac)
Aflac noted that the alliance agreement between the two companies limits Japan Post to owning 10% of Aflac’s stock.
Japan Post will be buying its shares through the open market, rather than from Aflac,.
Aflac did not say how much Japan Post expects to pay for the Aflac stock.