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Japan Post Holdings To Buy 7% Stake In Aflac- Quick Facts

Aflac Inc. (AFL) said Wednesday that Japan Post Holdings Co. plans to purchase about 7 percent of the company's outstanding common shares through a trust.

The company noted that the investment will be accomplished on a non-dilutive basis to Aflac's shareholders, as all shares will be purchased through open market or private block purchases in the U.S. In addition, this agreement does not change Alac's outlook to repurchase an expected range of $1.3 billion to $1.7 billion of its common shares in 2019.

In conjunction with this announcement, Aflac will host a conference call today.

Aflac noted that through this announced strategic alliance, the two parties have renewed their mutual commitment to the cancer insurance marketplace in Japan.

Japan Post Co., Ltd., a wholly owned subsidiary of Japan Post Holdings, will continue to offer Aflac's cancer products through more than 20,000 postal outlets across Japan, as well as through Japan Post Insurance Co., Ltd. and its 76 directly managed sales offices.

The parties will also continue to collaborate to promote cancer awareness and education, cancer screening, and philanthropic sponsorship of cancer-related causes in Japan. In addition to distributing cancer insurance policies through Japan Post and Japan Post Insurance, the companies will explore opportunities for further collaboration in product development.

As part of its investment, Japan Post Holdings has agreed to enter into a shareholder agreement with Aflac.

The agreement will provide for Aflac shares to be acquired by a trust under which Japan Post Holdings will be the economic beneficiary. It will also include a cap on share ownership of 10 percent, a minimum holding period or "lock-up" provision, and a standstill provision as well as voting restrictions in light of the fact that the shares, like all Aflac common shares, will be eligible for 10-for-1 voting rights after being held for 48 consecutive months.

Japan Post group consists of Japan Post Holdings and its three operating subsidiaries: Japan Post Co., Ltd.; Japan Post Insurance Co., Ltd.; and Japan Post Bank Co., Ltd. These subsidiaries provide universal postal services as well as a variety of financial products in post offices throughout Japan.

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