GMO Internet prepares to sell part of its stake in GMO Financial Holdings

Maria Nikolova

A total of 20,000,000 common shares, equal to 16.7% of voting rights, will be offered at the secondary offering.

Japanese online services provider GMO Internet Inc. (TYO:9449) has today announced its intentions to sell a part of its stake in its subsidiary GMO Financial Holdings Inc (TYO:7177). As a result of the transaction, GMO Internet will still hold more than 50% of the total number of voting rights of GMO Financial Holdings.

The details of the secondary offering of shares of GMO Internet’s subsidiary are yet to be announced but it is already known that 20,000,000 common shares, or 16.7% of the total number of voting rights, will be offered. The offer price will be unveiled next month, probably at some point from October 3 to October 9, 2018.

GMO Internet notes that it has agreed to lend holdings (a maximum of 3 million shares) in GMO Financial Holdings to Daiwa Securities Co., Ltd. for offering by way of over-allotment by Daiwa Securities. Daiwa Securities will have an option to purchase additional common shares of the GMO Financial Holdings from the shareholders up to 3 million shares by using the so-called “Greenshoe Option”.

The purpose of the offering is to help GMO Financial Holdings improve the distribution and liquidity of its common shares.

As a result of the sale, GMO Internet’s ownership of GMO Financial Holdings will decrease to 61.1% if 3,000,000 shares are sold in the offering by way of over-allotment and Daiwa Securities exercises the “Greenshoe Option” for all of those shares.

GMO Financial Holdings will remain a core company in GMO Internet’s Internet Finance segment.

GMO Internet said it expects to register an extraordinary profit on individual accounts due to the sale of shares. However, since GMO Financial Holdings will still be a consolidated subsidiary on the consolidated accounts, and despite capital reserve fluctuations, the transaction will not have any impact on the consolidated results.

In late August this year, GMO Financial Holdings agreed to underwrite a capital increase of GMO Click Global Markets, Inc. The Company underwrote the capital increase with the aim of preparing to accelerate the new businesses as the subsidiary is expected to play a central role in offering services related to transactions to individual investors and also to financial institutions worldwide.

Read this next

Fintech

Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).

Chainwire

Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.

blockdag

BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Binance’s CZ could stay in prison until 2027, wife begs for mercy

Changpeng “CZ” Zhao, the founder and former CEO of Binance, has apologized for his decisions and accepted “full responsibility” in a letter to U.S. District Judge Richard A. Jones.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

<