Daiwa Securities Group announced that it will acquire a 14.9 percent stake in COL Financial Group, the largest online securities company in the Philippines for 3 billion yen (about US$27.4 million) from existing shareholders next week.
“The acquisition will be executed as a block sale transaction through the facilities of the exchange,” COL Financial said.
For Daiwa, the reason behind the investment was to capitalize on the Philippines’ fast-growing retail segment and young wealth builders which are among the major beneficiaries of the country’s strong economic prospects.
COL Financial, founded in 1999, fits the category as it is the largest online stockbroker in the Philippines. The company based in Manila is listed on the Philippines Stock Exchange and provides expert guidance, and advisory services to more than 200,000 customers.
Based on the number of online accounts held, the company holds up to 70 percent of the market share.
In terms of trades executed, the company ranks 6th out of 132 trading participants in terms of value turnover at the end of 2016. Last year, it recorded sales of 833.7 million pesos (about US$16.7 million) and a net profit of 328.5 million pesos.
On the other end, Daiwa Securities is a leading financial service firm in Asia, operating core business such as retail, global markets, global investment banking, asset management, and investment. It has operates a joint venture brokerage with a government-affiliated Philippine bank, mostly serving institutional investors.
By Vivian Foo, VCNewsNetwork