After a JT subsidiary was placed under Russian control, a maximum loss risk of approximately ¥1.3 trillion and concern over a dividend cut have emerged. Selling of the shares continued in the Tokyo market on the 9th, and the closing price fell sharply from the previous day.
Shares of Japan Tobacco (JT) were allocated at the limit-down level in trading through the 9th, and selling continued. The cause was the fact that a subsidiary owned by JT had been placed under the control of the Russian government, and market participants have pointed to the possibility that recovering control of the business may prove difficult.
Market participants estimate that the temporary Russian control could create a maximum loss risk of approximately ¥1.3 trillion and are also concerned about the possibility of a dividend cut. This outlook is said to pose a risk to JT's future capital allocation and financial soundness.
Selling orders for JT shares flooded the Tokyo market on the 9th, and the stock ended trading at ¥5,269, down 16% from the previous day. The shares remained under selling pressure throughout the session and approached the limit-down level.
The view has emerged that control of the business will not be restored quickly as long as the current situation involving the Russian government continues.