The Tochigi Bank, Ltd. agreed in principle to acquire additional 51.94% stake in Utsunomiya Securities Co., Ltd. from Tokai Tokyo Financial Holdings, Inc..
August 22, 2016
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The Tochigi Bank, Ltd. (TSE:8550) agreed in principle to acquire additional 51.94% stake in Utsunomiya Securities Co., Ltd. from Tokai Tokyo Financial Holdings, Inc. (TSE:8616) on August 23, 2016. Pursuant to the transaction, The Tochigi Bank will hold 60% stake and Tokai Tokyo Financial will hold 40% stake in Utsunomiya Securities. Utsunomiya Securities reported for the year ended March, 2016, net assets of ¥2.96 billion, total assets of ¥6.9 billion, operating revenue of ¥1.6 billion and net income of ¥225 million.
The acquisition of the shares of Utsunomiya Securities by Tochigi Bank is conditional upon obtaining the approval from the related regulatory authorities and meeting other requirements if any. The transaction is expected to close sometime in the fiscal year 2016. The transaction may affect Tokai Tokyo Financial's performance for the fiscal year ending in March, 2017 only to the negligible extent.
THE TOCHIGI BANK, LTD. (the Bank) is a Japan-based regional bank mainly engaged in the provision of financial services, with a focus on banking services. The Bank operates in two businesses. The banking business is engaged in the provision of deposit services, loan services, and domestic and foreign exchange services, securities trading and investment services, bonds services and the registration service and other services, as well as the over-the-counter sale of insurance products. The Leasing segment is engaged in the provision of equipment leasing services, housing loan guarantee services, credit card services and others. The other business is engaged in provision of equipment leasing services, housing loan guarantee services, securities buying and selling service, credit card services and others.
The Tochigi Bank, Ltd. agreed in principle to acquire additional 51.94% stake in Utsunomiya Securities Co., Ltd. from Tokai Tokyo Financial Holdings, Inc..
THE TOCHIGI BANK, LTD. 
