Daiwa Securities buys into COL Financial

Daiwa Securities Group Inc. has acquired a 14.9 percent stake in COL Financial Group Inc., COL said on Friday.

"Daiwa's invesment in COL gives Daiwa the opportunity to participate in the Philippines' fast-growing retail segment and young wealth builders, which are amongst the major beneficiaries of the country's strong economic prospects," the online stockbroker disclosed to the Philippine Stock Exchange.

The transaction was consummated in a special block trade on the PSE during the morning session, according to a person familiar with the deal, who asked not to be named in the absence of consent from Daiwa Securities.

PSE data showed DBP-Daiwa Securities (Philippines) Inc. bought 70,924,000 COL Financial shares, at P18.63 per share, in a special block sale. The gross transaction value is P1.321 billion, and is above the 52-week high of COL Financial shares at P18.60 per share.

DBP-Daiwa is "... the buying broker in the deal," the person privy to the transaction said.

"The acquisition by Daiwa was purely a portfolio investment on their part," the source said

"They liked the Philippine growth story and saw the opportunity to participate in it through COL. They also liked the fact that the participation segment in the stock market remains less than 1.0 percent of the population," the person added.

COL Financial is the largest online stockbroker in the Philippines with over 200,000 clients, and is the top stockbroker in terms of executed trades.

A Japanese investment bank, Daiwa Securities is the second largest securities brokerage in Japan after Nomura Securities.

COL Financial shares were trading at P16.62 per share as of 1:56 p.m. on the PSE. — VDS, GMA News