The SBI Group hereby announces that it has reached to the conclusion to reorganize its subsidiaries, including SBI AXES Co., Ltd. (hereinafter "SBI AXES"), a subsidiary listing on South Korea's KOSDAQ Market, which leads to aggregation of the Group's FinTech businesses.
Also, upon the reorganization, SBI AXES has begun preparation for changing its corporate name.
1. Background of the reorganization of subsidiaries
While technological innovation in financial services is gathering universal attention, the SBI Group incorporates subsidiaries that conduct various FinTech-related businesses, such as online settlement, social lending services and international remittance as well as cloud services of back-office operations, respectively. Among these subsidiaries, there are businesses that have high affinity in client attributes and service providing means, and in this context, by aggregating those businesses, SBI Holdings, Inc. (hereinafter “SBIH”) believes that it is possible to enhance corporate value and continuously grow by further exploiting synergies. Therefore, SBIH has decided to reorganize a portion of its subsidiaries.
As for the reorganization, the whole issued shares of each of SBIH’s subsidiaries, namely SBI Social Lending Co., Ltd., SBI Remit Co., Ltd. and SBI Business Solutions Co., Ltd. (hereinafter collectively “Companies Concerned”), will be transferred to SBI AXES from SBIH and others, and become SBI AXES’ wholly owned subsidiaries. Meanwhile, in order to procure some of the funds for the said share acquisition, SBI AXES plans to issue new shares by third-party allotment of JPY 1,300 million in total with SBIH as the allottee.
2. Change of SBI AXES’ corporate name
In accordance with the reorganization, SBI AXES, which is SBIH’s subsidiary, will form a business group that affiliates multiple FinTech-related businesses of the SBI Group. Going forward, SBI AXES will endeavor to further enhance corporate value by accelerating its growth from placing these FinTech-related businesses at the heart of its business as well as developing services with high customer benefits through the aggressive adoption of new elemental technologies, including blockchain.
Therefore, SBI AXES has begun preparation for changing its corporate name as stated below. The change of corporate name will be resolved upon the approval from the 6th General Meeting of Shareholders that is scheduled to be held on June 22, 2017.
New corporate name (planned) : SBI FinTech Solutions Co., Ltd.
Scheduled date of change : July 1, 2017
3. Future outlook
Since the reorganization is among SBIH’s consolidated subsidiaries, SBIH believes that the impact on its consolidated financial results for the current fiscal year will be immaterial.