KDDI Mulling Investing Up to 100 B. Yen in Kabu.com
Tokyo, Jan. 24 (Jiji Press)-Japanese telecommunications carrier KDDI Corp. <9433> is considering investing up to 100 billion yen in Kabu.com Securities Co. <8703>, a Tokyo-based online brokerage firm, informed sources said Thursday.
The step reflects the aim of KDDI, which is faced with the maturity of the smartphone market, to diversify its revenue sources by strengthening its operations in the field of fintech, or financial services utilizing advanced information technologies.
The two companies are expected to offer new financial services that utilize the large customer base of KDDI, which has some 53 million mobile phone subscriptions, and the brokerage business expertise of Kabu.com.
KDDI is considering purchasing Kabu.com shares through a takeover bid, according to the sources.
If the deal is realized, KDDI would take an equity stake of nearly 50 pct in Kabu.com and there would be a high possibility of the online brokerage house getting delisted from the Tokyo Stock Exchange. Kabu.com is currently listed on the TSE's first section.
[Copyright The Jiji Press, Ltd.]