JAL targets broader range of investors with stock split

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Japan Airlines board of directors has approved plans to undertake a "two-for-one" common shares stock split as it targets a broader range of investors.

The stock split will be implemented by way of a stock dividend whereby each shareholder will receive one additional share of stock for each share owned as of the close of business on 30 September 2014, says the carrier.

JAL had 181,352,000 common shares trading prior to the stock split. The number of issued shares after the stock split will raise to 362,704,000 shares.

As a result the total number of authorised shares will double to 800,000,000 and there will be 750,000,000 number of authorised common shares, says JAL.

The carrier says it wants to “develop an environment” to make its common shares more affordable to a broader range of investors including individuals and increase JAL's shareholder base.

The stock split is scheduled for 1 October 2014. The transaction is subject to approval at the next general shareholders' meeting scheduled for June.