Nomura to sell brokerage JV stake to Philippines’ largest commercial bank

24, Jun. 2020

Photo by Jason Coudriet on Unsplash
Photo by Jason Coudriet on Unsplash

MANILA, NNA – Japanese finance giant Nomura Holdings Inc. will sell its entire stake in the joint venture BDO Nomura Securities Inc. back to the Philippine partner BDO Unibank, which is restructuring its brokerage business.

BDO Unibank, the biggest commercial lender in the Philippines, will buy the 49 percent of shares held by Nomura Asia Investment (Singapore) Pte. Ltd., Nomura’s subsidiary, the holding company said in a statement Tuesday.

The sale of shares will let BDO Unibank merge its securities brokerage business into BDO Securities Corp., a subsidiary that’s being “reorganized into a full-service brokerage firm with an expanded product offering to include non-equity securities,” the bank said in a legal notice to the Philippine Stock Exchange on Tuesday.

Neither side would disclose the transaction amount.

BDO Unibank wanted the transaction as part of its restructuring, a Nomura spokeswoman said.

"We have been discussing how to build an appropriate partnership in the future,” the spokeswoman told NNA. “BDO is also considering restructuring its securities business and decided to sell it.”

Nomura said the transaction is subject to further discussions and final agreements followed by regulatory approvals. The 4-year-old venture is expected to dissolve after the sale goes through.

The joint venture BDO Nomura Securities was established with capital of 254 million pesos ($5 million). BDO owns 51 percent.