The Tokyo Stock Exchange on Friday delisted scandal-tainted Seibu Railway Co., whose falsification of financial statements made headlines recently.
Seibu Railway' shares closed Thursday at 485 yen, which is less than 10 percent of what they peaked at during the bubble period of the late 1980s and early 1990s.
The company hopes to relist its stock at a future date, though this could be difficult in light of the challenges it faces, including strengthening its internal supervision. The company is now tasked with building up a compliance system, increasing transparency and removing the influence of Yoshiaki Tsutsumi, who stepped down as chairman of Kokudo Corp., the parent company of the railway, in October.
Tsutsumi is still Kokudo's largest shareholder.
Seibu Railway, which had planned to list its shares on the Jasdaq stock market by the end of March, has abandoned this plan, citing difficulties in meeting these challenges at an early date.
Seibu Railway shares fell about 55 percent from levels seen before Oct. 13, when the company announced it had been falsifying its financial statements. This decline hurt Seibu group firms' financial conditions due to valuation losses on their shareholdings in the railway.