South Korea’s Kakao Pay eyes majority stake in Siebert
South Korean fintech Kakao Pay has acquired a 19.9% stake in US-based financial services firm Siebert Financial Corp for approximately $17 million.
Siebert sells stake to Korean fintech Kakao Pay
Following the initial deal, the company also plans to buy an additional 31.1% of newly issued Siebert shares in a second transaction, subject to shareholder and regulatory approvals.
Once the second purchase is finalised, Kakao Pay will become a majority shareholder of Siebert with 51% ownership.
Siebert says that current majority shareholders, the Gebbia family, will continue to hold a “significant” ownership in the firm. The company’s current management team, led by the Gebbia family, will also continue to operate as usual.
Founded in 1967 and headquartered in New York, Siebert provides a range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending and corporate stock plan administration solutions.
With the partnership, both firms plan on leveraging each other’s capabilities to accelerate their growth. While Siebert plans on broadening its platform and distribution, Kakao Pay is aiming to enhance its user experience and offer additional benefits for users who invest in foreign stocks.
Established in 2017, Kakao Pay is a subsidiary of Korean conglomerate Kakao Corp, offering financial services including online and offline payment, money transfer, bill payment and payment authentication. It launched an investment service in 2018 and expanded its offerings to include credit ratings, loans and insurance.
Gloria Gebbia, controlling shareholder and board member of Siebert, says the partnership with Kakao Pay “will provide us with significant financial resources to opportunistically invest in our key business lines” while also enabling the firm “to expand our reach and enhance our technology offerings”.
