SBI Holdings Inc., Japan’s largest online financial group, has raised its stake in Shinsei Bank Ltd. to 47.77%. This brings them a step closer to privatizing the lender.
In September 2021, SBI launched a tender offer to acquire a near-majority stake in Shinsei Bank. The offer was completed in December 2021. SBI now owns enough shares to take Shinsei Bank private.
SBI’s plan is to delist Shinsei Bank from the Tokyo Stock Exchange and make it a wholly owned subsidiary. This process is expected to be completed in the second half of 2023.
The privatization of Shinsei Bank is a significant development in the Japanese financial sector. In 2009, the government bailed out Shinsei Bank, which still holds a 20% stake. The privatization will mark the end of the government’s involvement.
SBI intends to invest in Shinsei Bank and foster its growth. Shinsei Bank is a prominent digital bank in Japan, and SBI aims to leverage its expertise in online banking to aid its expansion.
The privatization of Shinsei Bank also signifies confidence in the Japanese economy. SBI is a major player in the financial sector and sees its investment in Shinsei Bank as a vote of confidence for the bank and the overall economy.
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