Monex Group (MG) and Orix Securities (OS), a wholly-owned subsidiary of Orix Corporation (OC) have signed a share exchange agreement. MG has also entered into a capital alliance agreement with OC.
OC said that it will obtain shares of common stock newly issued by MG in this capital alliance and will become the major shareholder. OC has a management policy of actively allying itself with other companies, and this capital alliance is in accordance with that policy. Both groups will work together to promote collaboration and aim for a continual improvement of corporate value.
As in accordance with the share exchange agreement, MG will acquire all of its common stock holding in OS owned by OC, on January 17, 2010, which is the effective date of the share exchange. As a result, OS will become a wholly-owned subsidiary of MG and MG will become an equity method affiliate of OC.
The combination is expected to create a company in the Japanese internet financial industry with assets in custody exceeding JPY2.1 trillion and the number of customer accounts exceeding 1.3 million accounts. As with its past mergers, MG expects significant synergies through large cost optimisation from combining the two businesses, such as through systems-related cost reduction. Current services and fee structures offered to each of its respective customers are planned to be continued, although the product and service range is expected to expand in the future.
The share exchange agreement closing will be subject to approval by the extraordinary general meeting of shareholders of MG to be held on December 26 2009.
