Japan’s SBI Holdings makes $1b unsolicited offer for Shinsei Bank

Photo by jun rong loo on Unsplash

Japanese financial group SBI Holdings Inc on Thursday announced an offer to buy a near majority stake in Shinsei Bank Ltd in an unsolicited bid to take effective control of the lender.

SBI aims to become Japan’s fourth largest banking group and already owns the country’s largest online brokerage, an online bank and an asset manager. It has been taking stakes in smaller lenders to create a nationwide network.

Tokyo-based Shinsei, which is a smaller player but has strengths in consumer loans and corporate loans businesses, said in a statement that it had not been alerted to SBI’s plan and the tender offer was announced without its board approval.

The lender will provide guidance to shareholders after examining the bid, it said.

SBI, which already owns about 20% of Shinsei, plans to increase its stake to up to 48% and keep the lender listed after the tender offer, it said in a filing.

SBI is offering 2,000 yen per Shinsei share, a 39% premium over Thursday’s closing, for a total of 116.4 billion yen ($1.06 billion).

SBI, the financial unit of SoftBank Group until the tech firm exited in 2006, took a stake in Shinsei after private equity investor JC Flowers & Co sold down its holding in 2019.

JC Flowers, together with buyout fund Ripplewood, bought Shinsei‘s predecessor bank after it went bankrupt in Japan’s banking crisis in the late 1990s.

Shinsei has around $98 billion in assets, making it smaller than some 20 other banks in Japan, Refinitiv data showed.

SBI’s strategy, analysts say, is to use capital tie-ups with smaller banks – usually in regions outside of Tokyo – to expand its customer base for investment products.

SBI said in the filing it decided on the tender offer as Shinsei had not responded positively to SBI’s proposals for an alliance in areas where the two could create synergies.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.