Freedomholdingcorp.com – Freedom Holding Corp. (NASDAQ:FRHC) (the "Company") announced plans to expand its service offerings in the Kazakhstan region through the acquisitions of several companies over the next several months, as governmental regulatory approvals are received.
Timur Turlov, Company CEO, stated, "These acquisitions mark important steps in our regional strategy to implement online solutions for a wide array of consumer driven financial services products. When fully integrated with our brokerage and consumer banking platform, these acquisitions will further extend our leadership in providing convenient, secure, and user-friendly tools to our rapidly growing client base."
Freedom Finance Life and Freedom Finance Insurance
Two insurance companies, Insurance Company Freedom Finance Insurance JSC and Life Insurance Company Freedom Finance Life JSC will be acquired from Turlov, in related party transactions. The insurance companies will be acquired for cash of approximately US$13.72 million (KZT 6 billion) and US$12.35 million (KZT 5.4 billion), respectively, which amounts equal Turlov's investments in each company without any premium.
Freedom Finance Life is a life insurance company providing online insurance products covering life, medical, including coronavirus, travelers' insurance and lenders insurance. Freedom Finance Life has more than 350 thousand clients in 19 cities of Kazakhstan. The company has been assigned "B" level rating by S&P Global Ratings and a long-term credit rating by "kzBBB-"national scale: Outlook - "Positive."
As of December 31, 2020 and December 31, 2019, Freedom Finance Life had total assets of US$112.6 million (KZT 47.4 billion @USD/KZT 420.91 per the National Bank of the Republic of Kazakhstan ("NBRK")) and US$47.31 million (KZT 18.1 billion @USD/KZT 382.59 per NBRK), total liabilities of US$96.7 million (KZT 40.7 billion @USD/KZT 420.91 per NBRK) and US$35.29 million (KZT 13.5 billion @USD/KZT 382.59 per NBRK) ) and net income of US$5.32 million (KZT 2.2 billion @average USD/KZT 413.36 per NBRK) and US$1.22 million (KZT 468.3 million @average USD/KZT 382.87 per NBRK), respectively.
Freedom Finance Insurance is a leader of online insurance in Kazakhstan. The company offers its customers an online solution and conveniently located kiosks to acquire government mandated auto insurance policies and extended auto casualty coverage. The company has been assigned "B" level rating by S&P Global Ratings and "kzBB+" national scale rating: Outlook - "Stable."
As of December 31, 2020 and December 31, 2019, Freedom Finance Insurance had total assets of US$42.53 million (KZT 17.9 billion @USD/KZT 420.91 per NBRK) and US$15.42 million (KZT 5.9 billion @USD/KZT 382.59 per NBRK), total liabilities of US$30.41 million (KZT 12.8 billion @USD/KZT 420.91 per NBRK) and US$7.06 million (KZT 2.7 billion @USD/KZT 382.59 per NBRK) and net income of US$636 K(KZT 262.9 million @average USD/KZT 413.36 per NBRK) and a net loss of US$1.77 million (KZT 677.1 million @average USD/KZT 382.87 per NBRK), respectively.
PayBox.money and Ticketon.kz
The Company will also acquire PayBox.money, a leading payment provider in Kazakhstan, and Ticketon.kz, a leading ticket marketplace in country, as well as their subsidiaries. The acquisitions will be made from third parties and will not be deemed material acquisitions under Securities and Exchange Commission Regulation S-X. PayBox.money is headquartered in Almaty, Kazakhstan and operates regional payment aggregator platforms in Kazakhstan, Russia, Uzbekistan, and Kyrgyzstan that provides businesses and consumers with the ability to accept payments online and at point-of-sale locations using all major credit and debit methods. Ticketon.kz is a Kazakhstani online entertainment, cultural and recreational event ticketing system. The company was founded in 2011, and currently has locations in 21 cities with 150 connected facilities and is expanding operations into Tajikistan, Uzbekistan and Kyrgyzstan.
Freedom Holding Corp., a Nevada corporation, is a financial services holding company conducting retail financial securities brokerage, investment research, investment counseling, securities trading, investment banking and underwriting services and consumer banking through its subsidiaries under the name of Freedom Finance in Europe and central Asia. The Company employs more than 2,900 persons and is a professional participant in the Kazakhstan Stock Exchange, Astana International Exchange, Moscow Exchange, Saint-Petersburg Exchange, Ukrainian Exchange, Republican Stock Exchange of Tashkent, and Uzbek Republican Currency Exchange. A Company subsidiary is also a member of the New York Stock Exchange and Nasdaq Stock Exchange. The Company is headquartered in Almaty, Kazakhstan, with administrative office locations in Russia, Cyprus, and the United States.
Freedom Holding Corp. common shares are registered with the United States Securities and Exchange Commission and are traded in the United States on the Nasdaq Capital Market, operated by Nasdaq, Inc.
