* Japan wants to ease tender offer rules by 2011 fiscal year
* Japan plans to relax rules on usage of shares for M&A
(Adds confirmation govt official)
TOKYO, Sept 24 (Reuters) - Japan plans to relax rules to make it easier for companies to use their own shares in tender offers, as the country tries to promote acquisitions and industry reorganisation, a government official said on Friday.
Tender offers in Japan currently comprise cash purchases of stock, requiring firms to raise huge sums. But the eased regulations would make it simpler for companies to use their own shares, said Futoshi Nasuno, director in the corporate systems division at the Ministry of Economy, Trade and Industry.
"As far as we know there have been no companies in Japan which have used their own stock to conduct tender offers, even though that's technically allowed," said Nasuno.
"Using their own stock for acquisitions would help companies spend their money on other things, such as investment for business expansion."
Firms would refrain from issuing new shares if they could use their own stock for acquisitions, limiting dilution, Nasuno aded.
The ministry plans to submit revised industrial revitalisation legislation to parliament next year for implementation by the financial year starting April 2011, Nasuno said. (Reporting by Mariko Katsumura and Junko Fujita; Editing by Joseph Radford)