Japan's SMFG Acquires 9.9% Stake in SBI for over $580M

Japan's Sumitomo Mitsui Financial Group (SMFG) Inc said on Thursday it would take a 9.9% stake in online financial company SBI Holdings Inc in a deal worth more than $580 million.

SBI will issue new shares worth 79.65 billion yen ($586.70 million) to Japan's second-largest lender by assets in a deal aimed at expanding their operations in online financial services, SBI and SMFG said in separate statements.

Fazzaco to Launch Business Awards 2022​

The new share issuance would also bolster SBI's capital which has been stretched since its $1 billion cash bid last year for midsize lender Shinsei Bank Ltd.

SBI has said it aims to become Japan's fourth-largest banking group after Mizuho Financial Group Inc. It already owns the country's largest online brokerage, an online bank and an asset manager.

Japan's Nikkei falls on recession worries; US stock futures drag

SMFG, Japan's second-largest lender by assets after Mitsubishi UFJ Financial Group Inc, has its own brokerage unit, SMBC Nikko Securities Inc.

(Source: Business Recorder)