TOKYO: Mizuho Financial Group Inc. plans to acquire an additional equity stake in online brokerage firm Rakuten Securities Inc. through its subsidiary Mizuho Securities Co., it was learned Thursday.

With an additional investment of about 90 billion yen, the Japanese megabank group will raise its stake in Rakuten Securities to just under 50 percent, according to informed sources.

Mizuho Securities invested some 80 billion yen in Rakuten Securities last year to acquire an equity stake of about 20 percent, making it an affiliate under the equity method.

The megabank group hopes to strengthen its ties with the online brokerage and attract mainly younger customers, amid growing interest in asset management ahead of the planned expansion of the Nippon Individual Savings Account, or NISA, tax exemption scheme for small-lot investments in January next year.

Technology conglomerate Rakuten Group Inc. has been considering taking Rakuten Securities Holdings Inc., the holding company of Rakuten Securities, public as part of efforts to rebuild its finances amid a slump in its mobile phone business.

The holding company has already applied to be newly listed on the Tokyo Stock Exchange.

By securing funds for now through the additional investment from Mizuho, Rakuten Group may review its strategy for raising funds through the holding company’s initial public offering, including the timing of the possible listing.

Rakuten Securities made online trading of domestic stocks free of fees last month, following a similar move by online brokerage giant SBI Securities Co. Concerns over a decline in profitability due to lower fee revenue are believed to have affected the plan to take the holding company public.

Rakuten Group admitted that it is considering an additional investment by Mizuho Securities and considering the direction of its plan to take Rakuten Securities Holdings public, but said that nothing has been decided at this point. Mizuho Financial also admitted in a statement that it is considering acquiring the additional stake.

The move is expected to be announced as early as Thursday.

JIJI Press