Shares of Monex Group soared on Thursday morning in response to the company’s announcement of plans to sell control of its Japanese online brokerage business to a subsidiary of Nippon Telegraph & Telephone (NTT). The move includes a partnership agreement between Monex Group and the acquiring company.
Currently, Monex Group shares are up 18% at 659 yen, which represents the upper end of the day’s trading range. NTT shares have seen a more modest increase of 1.7%.
In a statement released after the market closed on Wednesday, NTT Docomo revealed its intention to make Monex Inc., the online brokerage business, a subsidiary. As part of this arrangement, NTT Docomo plans to provide financial services and products to its mobile users through the partnership.
To acquire a 49% stake in the holding entity responsible for owning the online brokerage business, NTT Docomo is prepared to invest ¥48.56 billion ($325.6 million). Additionally, the majority of the board seats in the holding company will be held by NTT Docomo, while Monex Group will retain a 51% stake.
Monex Group expects the transactions to be finalized by January 4. Aside from the online brokerage business, the group’s business portfolio also includes TradeStation Group, a US online brokerage, and Coincheck, a cryptocurrency exchange.