GMO Internet, Inc announces that its consolidated subsidiary, GMO Payment Gateway, Inc (GMO-PG) has resolved to transfer all of the shares of its equity method affiliate 2C2P Pte. Ltd. owned by the subsidiary GMO-Z.COM PAYMENT GATEWAY PTE. LTD.

In addition, the transfer of shares will result in the exclusion of 2C2P as an equity method affiliate.

In order to expand the payment processing business in the Asian region, GMO-PG, which develops comprehensive payment-related services and financial-related services in the Internet Infrastructure segment, acquired shares of 2C2P, a company providing payment processing business mainly in Thailand, through the consolidated subsidiary GMO-Z PG SG and made 2C2P an equity method affiliate in August 2016.

2C2P has steadily improved its business performance in Southeast Asia, and GMO-PG has recently received an offer from a global payment processing company based in China to acquire the shares owned in 2C2P. The counterpaty in the transfer is Advanced New Technologies (Singapore) Holding Pte Ltd.

GMO-PG has agreed to the sale and executed an agreement for the transfer of shares based on the decision that the transfer would be beneficial for the future growth of GMO-PG as well as 2C2P and by taking a comprehensive view that the price of the share transfer is valid and reasonable, and that the acquiror’s policy is to further enhance 2C2P by making it a subsidiary.

The transfer of shares will be completed once all the preconditions and terms are fulfilled (estimated timing of closure is June 2022).

GMO-PG will continue its policy to expand the Payment Processing Business and the Money Service Business overseas, particularly in Southeast Asia. The funds received from the share transfer will strengthen the financial soundness of GMO-PG as well as be used for growth investments including overseas lending operations in order to further our efforts to achieve sustainable growth and enhance the corporate value.

Due to the transfer of shares, the company expects to record a gain on sales of investments in securities of ¥17.0bn for the fiscal year ending December 2022. Part of the transfer value is stored in an escrow account as set forth in the share transfer agreement, and the Company expects to post a gain on sale, etc. of approximately ¥1.0bn by the fiscal year ending December 2024, when conditions are met.