TOKYO, July 4 Reuters Japanese financial groups including Tokio Marine, Sompo and two MSAD units will sell Honda Motor shares worth 535 billion yen 3.3 billion to unwind crossshareholdings, a regulatory filing showed on Thursday.

Mitsubishi UFJ and Mizuho, Japan39;s first and thirdlargest financial groups, also plan to participate in the sale, a sign that the unwinding of crossshareholdings is catching pace as part of Japan39;s corporate governance reforms.

Reuters reported the insurers39; plans earlier this week.

Crossshareholding, or companies holding shares in each other, has long been seen as a way to reinforce business ties in Japan. But governance experts and foreign investors said it leads to lax governance by protecting management from shareholders.

The secondary share offering from a total of 10 financial institutions would come up to 300 million shares including overallotment, with the price yet to be decided. Honda39;s shares ended at 1,791 yen on Thursday, valuing the offering at about 535 billion yen.

The four nonlife insurers, which include MSAD Insurance subsidiaries Mitsui Sumitomo Insurance and Aioi Nissay Dowa, have previously said they would cut their entire crossshareholdings to zero in a few years, in response to a pricefixing scandal last year.

Honda has already announced plans to buy back up to 300 billion yen39;s worth of its own shares during the current financial year. It announced no further share buyback on Thursday.

Honda was one of the…