In line with a current initiative by FXCM Inc (NYSE:FXCM) to sell non-core assets, the firm has today announced that it is to sell its Hong Kong division, FXCM Asia Limited, to Japanese electronic trading giant Rakuten Securities.
In this particular deal, which echoes a similar sale by FXCM of its Japanese operations to Rakuten Securities recently, Forex Trading, LLC, a subsidiary of FXCM Newco, LLC, has signed a definitive agreement to sell FXCM Asia Limited (“FXCM Hong Kong”) to Rakuten Securities, Inc., a top 5 FX broker in Japan, and a subsidiary of Rakuten Inc (TYO:4755) which is one of the world’s largest internet services companies, for a total consideration of approximately $36 million.
Subject to regulatory approval from the Hong Kong Securities and Futures Commission and customary closing conditions, the transaction is expected to close in Q3. The consideration for the net assets will be finalized on the date of closing.
Rakuten Securities will continue to use the FXCM trading system for FXCM Hong Kong clients under a white label agreement with FXCM and will be notifying clients once the deal is finalized.
“We are pleased to extend our relationship and announce another transaction with Rakuten Sec through the sale of FXCM Hong Kong,” said Drew Niv, CEO of FXCM. “This is another positive step towards FXCM completing its plan to sell non-core assets and repay the Leucadia loan.”
“We are delighted to invite FXCM Hong Kong to Rakuten group, followed by FXCM Japan,” said Yuji Kusunoki, President of Rakuten Sec. “This is a great opportunity for us to expand our FX business globally.”
FXCM Hong Kong is FXCM’s regulated entity providing services to predominantly Hong Kong residents. Forex Capital Markets Ltd (“FXCM UK”) will continue to service the broader Asian market.
Pinnacle Inc. served FXCM as financial advisors on the deal.
For the official announcement from FXCM click here.