TOKYO, Oct. 30, 2015 (GLOBE NEWSWIRE) -- Daiwa Securities Group, Inc. (TSE 1:8601), subsidiary, Daiwa Securities, Inc, and GMO CLICK Holdings (JASDAQ:7177) and subsidiary GMO CLICK Securities today executed a Memorandum of Understanding under which the parties will consider a business alliance. Also, Daiwa Securities Group will acquire part of the stake held by GMO Internet in GMO CLICK HD.
Circumstances and Purpose of Alliance
From April 2015, DS Group made a start for further breakthrough, holding up “Passion for the Best” 2017, its new Medium-term Management Plan covering 3 years starting in FY2015. In this plan, DS Group uses the basic policy, “In response to the full-fledged start of an era of transition from savings to investment, attract customers with the industry’s top quality, and become their best partner”. DS Group is now working on the establishment of the platform which provides optimal products and comfortable information access in order to be the securities company group chosen by a wide range of customers including the young and the retired.
GMO Internet Group is a comprehensive Internet services group operating under the corporate tagline “Internet for Everyone” in four business segments; Internet Infrastructure, Online Advertising & Media, Internet Securities and Mobile Entertainment. GMO CLICK HD and GMO CLICK Securities provide securities, FX, CFD and other financial instruments trading services primarily to retail investors with the objective of making financial services more open and accessible. GMO CLICK Securities is the world’s largest FX provider by trading volume, having retained this position for three consecutive years since 2012.
The MOU was executed with the expectation an alliance would increase corporate value by mutually utilizing managerial resources to improve service quality and convenience to customers. Daiwa Securities Group also decided to acquire shares in GMO CLICK HD.
Business Alliance
The companies plan to establish a cooperative framework for providing leading-edge financial services attractive to customers. The alliance would combine Daiwa Securities Group’s firm business foundation and know-how in securities business cultivated as a comprehensive securities group, with GMO CLICK HD and GMO CLICK Securities ability to develop systems independently and its strong marketing expertise. The parties also intend to discuss developing highly attractive services such as FX and securities trading which leverage the strengths of both sides, and aim to execute a partnership agreement defining the alliance in more detail by end of March 2016.
Stock Acquisition
Daiwa Securities Group will acquire 11,100,000 shares (9.6% of outstanding shares on September 30, 2015) in GMO CLICK HD held by GMO Internet in a share transfer. Going forward Daiwa Securities Group may acquire up to a total of 20% of outstanding shares (including shares acquired today), based on progress and outcome of the alliance.
Schedule
Friday October 30, 2015
- Daiwa Securities Group, Daiwa Securities, GMO CLICK HD, GMO CLICK Securities execute MOU with view to forming business alliance
- Daiwa Securities Group and GMO Internet execute stock purchase agreement.
- Daiwa Securities Group acquires shares in GMO CLICK HD
About GMO Internet Group
GMO Internet Group (www.gmo.jp/en) is an Internet industry leader, developing and operating Japan’s most widely used domain, hosting & cloud, ecommerce, security, and payment solutions. The Group also comprises the world’s largest online FX trading platform, and online advertising, Internet media, and mobile entertainment products. GMO Internet, Inc. (TSE:9449) is headquartered in Tokyo, Japan.