SBI to launch tender offer for Shinsei Bank

Japanese online financial service giant SBI Holdings Inc. said Thursday that it will launch a tender offer for Shinsei Bank on Friday.

Already the top shareholder of the bank, SBI aims to make it a consolidated subsidiary by raising its equity stake in the lender to 48% from the current 20.32%. The tender offer could be a hostile bid depending on Shinsei’s response.

SBI has been asking Shinsei to expand their partnership, including in securities business. But little progress has been made in their talks.

Shinsei said in a statement that it had not been informed by SBI of the tender offer plan in advance, adding that the bank will announce its stance on the matter as soon as it is decided.

During the tender offer through Oct. 25, SBI plans to buy Shinsei shares at ¥2,000 apiece. Shinsei shares ended at ¥1,440 on the Tokyo Stock Exchange on Thursday.

SBI, which has been seeking the replacement of Shinsei executives, also proposed former Financial Services Agency chief Hirofumi Gomi as new chairman of the bank, saying that the company has obtained informal consent from him for serving in the post.

SBI voted against the re-appointment of Shinsei directors at the bank’s general shareholders meeting in June.

The company said that it aims to boost Shinsei’s profitability so that the bank can repay public funds, or taxpayer money, that it received from the government in the past.