Gov't eyeing 20% limit on equity ownership of Narita airport+

TOKYO, Feb. 13 Kyodo - The transport ministry plans to limit the equity ownership of Narita
International Airport Corp. by one shareholder to less than 20 percent and
impose fines on violators, according to a draft bill to revise the law on the
airport obtained Friday by Kyodo News.

The Ministry of Land, Infrastructure, Transport and Tourism also envisages
requiring holders of 5 percent or larger stakes in the company to submit
reports on their ownership to the transport minister. Failing to make a report
would also be punishable under the ministry's plan.
Narita International Airport, Japan's largest international gateway, is run by
a private namesake company currently owned 100 percent by the government. The
company is planned to offer its shares for public trading in fiscal 2010.
The ministry intends to limit the equity ownership of the airport operator by a
non-government shareholder to less than 20 percent -- measured by voting rights
-- in order to prevent the airport operator from being excessively influenced
by a specific shareholder.
The ministry is considering imposing a fine of up to 1 million yen or seeking a
maximum jail term of one year if an individual shareholder violates the limit.
In the case of corporate shareholders, the draft calls for a fine of up to 100
million yen.
The ministry also plans to limit the equity ownership to less than 15 percent
if a shareholder has close business ties with Narita International Airport.
The ministry is considering introducing the 5 percent rule as the Financial
Instruments and Exchange Law requires an investor, who acquires a stake of 5
percent or more in a company, to submit a report to the Finance Ministry.
The ministry-drafted plan is subject to Cabinet approval, expected by the end
of this month, government officials said.
Last December, a government advisory panel recommended applying the 20 percent
ownership limit to a shareholder, whether Japanese or foreign.
==Kyodo