Bangkok--20 Aug--IR PLUS
Finansia Syrus Securities Public Company Limited (“FSS”) has entered into a memorandum of understanding to form a business and capital alliance including the holding of 20% equity interest in SBI Royal Securities Plc., Cambodia (“SBIR”), a subsidiary of SBI Holdings, Inc. (“SBIH”) and the sole Japanese securities firm in Cambodia.
SBIR has “full licenses” to operate a securities business in Cambodia from Securities and Exchange Commission of Cambodia (SECC). Currently, SBIH holds 81.63% of SBIR and Royal Group of Companies hold the remaining interest.
SBIH is a major financial services group with Head office in Tokyo. Its core business divisions include Asset Management Business, and Financial Services Business. It affiliates a comprehensive online securities company, namely SBI SECURITIES, which is a pioneer in Japan, offering an innovative commission system, advanced trading tools, and a rich lineup of services. SBI SECURITIES is the top online securities company in Japan in terms of number of accounts, customer assets and individual brokerage trading value share.
The Royal Group of Companies, Cambodia’s largest conglomerate group established in 1990, operates wide ranging businesses primarily in Cambodia, including financial businesses, such as banking, investment, media business, and mobile & telecommunications business.
The business and capital alliance will enable FSS to expand its business into Cambodia in order to tap into the country’s rapid economic growth as well as the expected increase in IPO transactions. FSS hope to contribute to the joint venture by attracting Thai investors to trade Cambodia’s stocks and also to support SBIR’s investment banking activities.
Details of the business and capital alliance are as follows.
1. Outline of the business alliance
FSS and SBIR will discuss the details of the alliance in the future with respect to (1) expansion of the investment banking business related to IPO transactions which are expected to grow in Cambodia, (2) various initiatives to attract investors from Thailand to the securities market in Cambodia, and (3) development of research sections to provide information on economic and financial market trends.
2. Outline of the capital alliance
In order to further deepen the alliance, FSS will acquire new shares issued by SBIR through a third party allotment. At the same time, a portion of SBIR’ shares held by the existing shareholders including SBIH will be transferred to FSS. As a result, FSS will hold 20.0% of SBIR’s outstanding shares. The total value of the investment by FSS is estimated at USD 3,276,000.00
3. Outline of SBI Royal Securities
(1) Company name SBI Royal Securities Plc.
(2) Head office Siri tower, No. 104, Russian Federation Blvd
Sangkat Toeuk Laok I, Khan Toul Kork,
Phnom Penh, Kingdom of Cambodia.
(3) Representative Mr. Eiichiro So, Chief Executive Officer
(4) Main business activities The Company’s expertise covers all aspects of securities services consisting of Corporate Finance and Brokerage services; and capability of executing transactions across all segments of the Cambodian economy.
(5) Capital USD 10,152,123.00 (as of the end of June 2013)
(6) Date of establishment 14th December 2011
The Transaction is subject to the completion of due diligence and entering into definitive agreements including a stock purchase agreement as well as approval from relevant authorities in Thailand and Cambodia.