Aflac (AFL) Stock Surges on Japan Post Investment
Aflac (NYSE:AFL) stock is on the rise today as a Japan courier conglomerate has made a sizable investment on the insurance company.
Japan Post
said that it will be placing a bet of approximately $2.6 billion on the Columbus, Georgia-based insurer, which will make it the largest Aflac shareholder in the country. The deal will allow Japan Post to increase its stake to a maximum of about 20% in four years from now.
The current largest shareholder of the insurance giant is Vanguard Group, which has an 8.8% stake on the company, according to data compiled by Refinitiv. Aflac told Reuters that the company was in talks with Japan Post over the latter becoming a minority stake owner on the former. However, the deal did not say anything regarding Aflac or any of its subsidiaries becoming part of Japan Post.
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The deal has not been made official by either party yet in a public setting, but it is expected to be unveiled sometime later this month. Reuters added that Aflac did not comment any further on the matter, while a spokesman for Japan Post did not have anything to say on the matter either.
The agreement is a follow-up of an announcement made five years ago, allowing Aflac to sell its cancer insurance at Japan Post’s offices across Japan.
AFL stock is up close to 6% on Thursday following the investment news.
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