Second-tier brokerage Kankaku Securities Co. and Kokyo Securities Co., a small brokerage affiliated with Nippon Telegraph and Telephone Corp., said Monday they will merge Oct. 1, with Kankaku as the surviving entity.
The merged company will be renamed Mizuho Investors Securities Co., in line with the planned formation Sept. 29 of Japan's largest banking group, the Mizuho Financial Group, by Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan, the brokerages said. Kankaku and Kokyo are affiliates of DKB.
Each Kokyo share, with a par value of 500 yen, will be exchanged for nine Kankaku shares, the par value of which is 50 yen, they said.
Kankaku Vice President Shozo Hibi, who is to become president June 29, will take the helm of the new firm, they said.
The Tokyo-based Kankaku, with 55 domestic outlets and 1,214 employees as of March 31, posted a pretax profit of 17.88 billion yen and a net loss of 64.37 billion yen on operating revenues of 58.77 billion yen in fiscal 1999.
Kokyo, also based in Tokyo, is owned 21.3 percent by NTT and 5 percent by DKB. It registered a pretax profit of 467 million yen and a net profit of 246 million yen on operating revenues of 1.46 billion yen in fiscal 1999. It has four outlets and a workforce of 66.
Mizuho Investors Securities, to be capitalized at 76.62 billion yen and based in Tokyo, will have estimated combined assets of 806.27 billion yen, they said.