Jibun Bank to Become KDDI Subsidiary

Economy

Tokyo, Feb. 12 (Jiji Press)--Major Japanese telecommunications carrier KDDI Corp. <9433> said Tuesday that it will make Jibun Bank, an online bank, a subsidiary.

Jibun Bank, now equally owned by KDDI and MUFG Bank, will issue new shares worth 25 billion yen for allotment to the telecom carrier, which operates the "au" brand mobile phone business. The third-party share allotment will raise KDDI's equity stake in the bank to about 64 pct.

On April 1, KDDI is set to establish an intermediate holding company, au Financial Holdings Corp., which will control Jibun Bank, to be renamed au Jibun Bank, and four other KDDI group financial companies.

KDDI also said that it plans to take a 49 pct stake in major online broker Kabu.com Securities Co. <8703>, now a unit of Mitsubishi UFJ Securities Holdings Co., through a tender offer.

The tender offer will be launched in late April, with KDDI aiming to buy Kabu.com shares at 559 yen apiece. After the tender offer, Mitsubishi UFJ Securities' stake in the Internet broker will fall to 51 pct from about 53 pct at present, and Kabu.com Securities will be renamed au Kabucom Securities Co.

[Copyright The Jiji Press, Ltd.]

Jiji Press