Shares of Siebert Financial are up 7% or 13c per share on Thursday to $2 per share after the firm announced earlier in the day that it has entered into an agreement to issue shares in Siebert to Kakao Pay, a fintech subsidiary of Korean-based conglomerate Kakao. Kakao Pay announced an agreement to purchase a 19.9% stake of Siebert of newly issued shares for approximately $17M on April 27, and subject to shareholder and regulatory approval, Kakao Pay will acquire an additional 31.1% of Siebert of newly issued shares. After the close of the second transaction, Kakao Pay will become the largest shareholder of Siebert with a total of 51% ownership of Siebert. The Gebbia family will continue to hold significant ownership, and Siebert’s current management team, led by the Gebbia family, will continue to manage the company’s operations and branch locations. The senior management teams at Siebert and Kakao Pay have a shared vision that supports each firm’s strategic direction. The partnership and capital infusion will accelerate Siebert’s growth plans while broadening its platform and distribution capabilities. Kakao Pay will leverage its technology expertise in the financial services sector and work in partnership with Siebert to strengthen the company’s business and growth strategy, while providing an enhanced user experience and additional benefits for users who invest in foreign stocks.
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