Business NEWS
Nomura acquires NikkoCiti Trust and Banking Corporation planning to Raise $4.82 Billionfrom a share offering
By Janina Energin for CEOWORLD Magazine Updated:October 5, 2009
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Japan’s biggest brokerage, Nomura Holdings Inc. (ADR) (NYSE:NMR) (TYO:8604), will sell as much as 454.4 billion yen ($5.1 billion) of stock at a 4.1 percent discount to today’s closing price as it seeks money to finance expansion in the U.S.
Nomura said last month it planned to raise up to 511 billion yen to bolster its domestic and overseas operations by selling new shares. The news sent its shares down 16% the next day.
Analysts had said Nomura’s expansion plans lacked specifics. But strong interest in the offering Monday suggests investors are willing to go along with the plan.
Japan’s largest brokerage by revenue wants to use the capital mostly to grow its business. In its domestic market, Nomura will use the money to upgrade its IT infrastructure and foster its branch network.
In another news, The Nomura Trust and Banking Co. Ltd., a wholly owned subsidiary of Nomura Holdings, Inc, announced on 1 October that it has successfully completed the acquisition of NikkoCiti Trust and Banking Corporation. Nomura paid all-cash consideration of 19 billion yen, subject to certain purchase price adjustments to occur post-closing.
Under new management, NikkoCiti Trust and Banking will continue to focus on its traditional strengths of providing fiduciary and trustee services to investment trust management companies. Nomura is aiming to merge NikkoCiti Trust and Banking with Nomura Trust and Banking in 2010 and is moving swiftly to ensure a smooth integration of the two businesses.
Established in 1993, NikkoCiti Trust and Banking employed 107 people as of March 31, 2009, and had capital of 20 billion yen. Total trust assets stood at around 4.5 trillion yen at the end of March.
Nomura Trust and Banking provides both trust and banking services as a key Nomura Group company. Founded in 1993, Nomura Trust and Banking employed 261 people as of March 31, 2009, and had capital of 30 billion yen. Total trust assets were around 19.5 trillion yen at the end of March.
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