Daiwa Securities to Take 15 Pct Stake in Aozora Bank

Economy

Tokyo, May 13 (Jiji Press)--Daiwa Securities Group Inc. said Monday it will acquire a stake of over 15 pct in Aozora Bank for 51.9 billion yen under a capital and business tie-up agreement.

The securities group will purchase new Aozora Bank shares to be issued under a third-party allotment scheme to make it an equity-method affiliate. It will send an outside director to the bank.

The move comes as the bank's earnings have been sluggish due in part to a deterioration in the U.S. real estate market. The bank aims to rebuild its management with funds from Daiwa Securities and strengthen its mergers and acquisitions and real estate operations by utilizing Daiwa Securities' know-how and customer networks.

"As demand for venture financing is increasing day by day, we will increase our capital to direct resources to this area," Aozora Bank President Hideto Omi told a press conference on the day.

On the same day, the bank reported a net loss of 49,904 million yen for the fiscal year that ended in March, falling into the red for the first time in 15 years.

[Copyright The Jiji Press, Ltd.]

Jiji Press