Monex Buys Coincheck for JPY3.6bn

Monex Buys Coincheck for JPY3.6bn

  • The deal execution date is planned as April 16, 2018
  • Monex’s Group CEO Oki Matsumoto is among Coincheck’s users for years
  • Coincheck’s current CEO Koichiro Wada will remain as the Exchange’s Executive Director

Monex Group(Monex) , a listed Japanese online brokerage firm, announced that the JPY 130bn(USD 1.3bn) market cap company would acquire 100% stakes in Coincheck, a Tokyo-based cryptocurrency Exchange, for JPY 3.6bn. The deal execution date is planned as April 16, 2018, according to the announcement.   

Coincheck, which was hacked NEM for about JPY 58bn in this January, is in the process of enhancing its governance and internal control after receiving the business improvement order from the Kanto Local Finance Bureau.

Monex’s Group CEO and Chairman Oki Matsumoto, who is among Coincheck’s individual users for years, said during the press conference, the acquisition would  provide business administration as well as system risk management know-how, based on the experiences gained in online brokerage industry for 19 years.

Coincheck, which remains its name and brand after becoming Monex’s wholly-owned subsidiary, would strengthen its capitals and internal control, Matsumoto said, adding that the subsidiary would also aim at an initial public offering(IPO) in future. Matsumoto will have a Director role in Coincheck.

Monex’s Group MD and Senior Executive Officer Toshihiko Katsuya will become Coincheck’s new President. “ We would re-gain trust from users and make Coincheck as a leading player,” Katsuya said during the Q&A session.

Coincheck’s current CEO Koichiro Wada will step down but remain as the Exchange’s Executive Director in charge of technological developments, according to Wada.

Monex, seeing blockchain and cryptocurrencies as next-generation technologies, has already set up the Monex Cryptocurrency Lab to grow its new business, according to the announcement. Monex is aiming at expanding its existing financial service business in Japan and overseas, via gaining Coincheck’s knowledge and technology in cryptocurrency and blockchain space, Matsumoto noted.

Monex’s share price was closed at JPY480, which is a 20% higher than yesterday’s closing price, as of April 6.  

by Genta Nakanishi

 

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