Dena sold portion of Nintendo shares
TL;DR
DeNA and other major shareholders are selling $1.9 billion in Nintendo shares to reduce cross-holdings, aligning with Japan's corporate governance reforms. The sale includes 32.7 million shares, with Nintendo's stock rising 3% due to investor optimism about a share buyback program.
Tags
Dena sold portion of Nintendo shares
DeNA and Major Shareholders to Sell $1.9 Billion in Nintendo Shares Amid Unwinding of Cross-Holdings
Nintendo Co. Ltd. (7974.T) is set to see a secondary offering of approximately ¥285.7 billion ($1.9 billion) as several of its major shareholders, including Kyoto Financial Group, Mitsubishi UFJ Financial Group (MUFG), and DeNA Co., reduce their strategic cross-shareholdings. The sale, involving 32.7 million Nintendo shares with an overallotment of up to 4.9 million additional shares, aligns with broader regulatory efforts in Japan to promote corporate governance by reducing interlocking ownership structures.
DeNA, a key shareholder, is divesting a majority of its Nintendo stake to enhance asset efficiency while maintaining its business alliance with the Kyoto-based gaming giant. The Bank of Kyoto, part of Kyoto Financial Group, held a 4.19% stake in Nintendo as of September 2025, while MUFG's trust bank held a 3.62% stake. These institutions, along with Resona Bank and others, are participating in the sale, which follows a similar 2019 transaction totaling ¥71 billion.
Nintendo's shares rose 3% in Tokyo trading following the announcement, reflecting investor optimism about the company's concurrent share buyback program, which could reach up to ¥100 billion. Analysts note that the move has minimal impact on stock liquidity but underscores compliance with Tokyo Stock Exchange and regulatory directives to reduce cross-shareholdings.
The unwinding of cross-shareholdings—a longstanding practice in Japan to strengthen business ties—has faced criticism for insulating management from shareholder influence. Regulators and foreign investors have long advocated for reforms, with Toyota recently announcing a similar $19 billion share sale.
Nintendo did not immediately comment on the transaction, while Kyoto Financial Group and MUFG declined to respond to requests for further details. The sale highlights a broader trend of Japanese corporations reevaluating ownership structures amid evolving governance standards.
(https://www.reuters.com/sustainability/sustainable-finance-reporting/nintendo-plans-around-19-billion-share-sale-by-kyoto-bank-others-sources-say-2026-02-27/): Reuters, February 27, 2026
(https://sg.finance.yahoo.com/news/nintendo-shareholders-sell-us-1-025200464.html): Yahoo Finance, February 27, 2026
(https://www.tipranks.com/news/company-announcements/dena-to-divest-majority-of-nintendo-stake-to-boost-asset-efficiency-while-preserving-alliance): TipRanks, March 2026
