URBAN Corp President Hiroyuki Bozono has sold most of his stake in the Japanese property developer after lenders requested the sale of shares used as collateral.
Bozono, formerly Urban's largest shareholder, cut his stake to 4.03 percent from 16.6 percent, the Hiroshima-based company said in a statement to the Tokyo Stock Exchange yesterday.
Urban shares have slumped 86 percent this year as Japan's property market slows and borrowing costs increase, making it difficult for developers to raise money for projects.
Urban's long-term debt rating was cut to a speculative level last month by the Japan Credit Rating Agency Ltd.
"The share price may fall further because of the credit risk," Masahiro Mochizuki, an analyst at Credit Suisse Group, told Bloomberg News. "Banks may exercise Urban's collateral option with an expectation of further share decline."
The shares gained 28 yen (26 US cents), or 14.81 percent, to 217 yen on the Tokyo Stock Exchange yesterday, following a 28-percent slump on July 4.