The Okasan Securities Group Inc. announced that its subsidiary, Marufuku Securities Co., Ltd. (hereinafter, "Marufuku Securities", Headquarter in Nagaoka, Niigata Prefecture; Chairman and CEO, Kenjiro Takemiya)has decided to acquire shares of Shinwa Securities Co., Ltd. (hereinafter, "Shinwa Securities"), Headquarter in Niigata City, Niigata Prefecture; President Narihide Kurata)and make the company a subsidiary.
| 1. |
Reason for the Stock Acquisition |
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Marufuku Securities, with headquarters inside Niigata Prefecture, is one of the largest regional securities companies in the prefecture in terms of net assets and operating revenue. The company has developed retail operations throughout Niigata Prefecture centered on its headquarters in Nagaoka since its establishment in 1899. Shinwa Securities is the third largest securities company in Niigata Prefecture. With headquarters located in Niigata City, the prefectures largest market, the company has established a strong franchise through developing its business on a face-to-face basis with customers.
Japan ranks second in the world in terms of privately held financial assets yet is confronting issues related to lower birth rate, aging society, and pension system. Now, the increasing asset management needs of individuals make the role of securities companies more important. In these conditions, we believe that a variety of service providers will be necessary to ensure continuing healthy development of the Japanese securities industry. Securities companies with strong local ties play a particularly important role supporting local markets and the region on various levels, including serving as familiar intermediaries for direct finance to broaden the base of investors and supporting the diversity of market participants and invigorating the regional economy.
Bringing together these two companies, which have gained the trust of customers in Niigata and thrived over many years, is a significant step in that it will enable the creation of a system capable of providing a higher level of service. Shinwa Securities shares will be transferred to Marufuku Securities with the intention to combine the two companies in a group. The acquisition should enable the creation of a structure allowing both companies to provide a higher level of service to customers and contribute to the economic and cultural development of Niigata Prefecture.
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| 2. |
Outline of the company acquiring the shares (Marufuku Securities) |
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| (1)Corporate name |
Marufuku Securities Co., Ltd. |
| (2)Head office |
Mitsui Life Nagaoka Building, 2-1-1 Higashisakanoue-machi, Nagaoka, Niigata Prefecture |
| (3)epresentative |
Chairman and CEO, Kenjiro Takemiya |
| (4)Paid-in capital |
¥852 million |
| (5)Dated of establishment |
October 1899 (Meiji 32) |
| (6)Number of offices |
13 |
| (7)Number of employees |
179 |
| (8)Results Data |
|
| Fiscal year ending |
March 2010 |
March 2011 |
March 2012 |
| Operating revenue |
2,355 million |
2,164 million |
2,279 million |
| Ordinary income |
387 million |
291 million |
395 million |
| Net income |
248 million |
195 million |
203 million |
| Total assets |
14,250 million |
14,071 million |
14,229 million |
| Net assets |
9,922 million |
10,017 million |
10,192 million |
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| 3. |
Outline of the company becoming a subsidiary (Shinwa Securities) |
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| (1)Corporate name |
Shinwa Securities Co., Ltd. |
| (2)Head office |
1178-1 Kamiokawamae-dori 6-bancho, Chuo-ku, Niigata City, Niigata Prefecture |
| (3)Representative |
President and CEO, Narihide Kurata |
| (4)Paid-in capital |
¥780 million |
| (5)Dated of establishment |
March 1944 (Showa 19) |
| (6)Number of offices |
1 |
| (7)Number of employees |
37 |
| (8)Results Data |
|
| Fiscal year ending |
March 2010 |
March 2011 |
March 2012 |
| Operating revenue/th>
| 562 million |
466 million |
401 million |
| Ordinary income |
35 million |
-40 million |
-54 million |
| Net income |
59 million |
-61 million |
-51 million |
| Total assets |
3,301 million |
3,145 million |
3,160 million |
| Net assets |
1,887 million |
1,808 million |
1,761 million |
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| 4. |
Summary of the Stock Acquisition |
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| (1)Acquiring the shares from: |
Mizuho Securities Co., Ltd.
(Head office: Chiyoda-ku, Tokyo, President and CEO Hiroshi Motoyama) |
| (2)Number of shares acquired: |
3,056,000 shares (82.1% of outstanding shares) |
| (3)Date of stock acquisition: |
July 2, 2012 |
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| 5. |
Future Outlook |
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The acquisition of Shinwa Securities shares is expected to have a minimal affect on the consolidated results of Okasan Securities. |
