Tokio Marine to form strategic partnership with Berkshire Hathaway, initially sell 2.49% stake

TOKYO, March 23 (Reuters) - Tokio Marine Holdings Inc 8766.T said on Monday it would form a strategic partnership with Warren Buffett's Berkshire Hathaway BRKa.N by initially selling a 2.49% stake through a third-party allotment of treasury shares.

The insurer said it would use the proceeds of up to 287.4 billion yen ($1.80 billion) to buy back its own shares to prevent dilution for existing shareholders.

Following the initial share allocation to Berkshire's core reinsurance entity, National Indemnity, any additional acquisition of Tokio Marine's shares are expected to be made primarily through the open market, Tokio Marine said in a filing. National Indemnity will agree not to buy more than 9.9% of Tokio Marine's outstanding shares without prior approval from the latter's board, the statement said.

($1 = 159.4100 yen)