Tokyo-Based Mitsubishi UFJ Taps This Australian Pension Administration Company For A$1.11B - What's On The Cards?

Mitsubishi UFJ Financial Group Inc MUFG disclosed the acquisition of Link Administration Holdings Limited for A$1.11 billion.

The purchase price per share of A$2.10 represents the premium to spot price of 23.5%, 1-month VWAP of 41.9%, and 3-month VWAP of 51.4%.

As per the deal, the acquisition will be implemented through a Scheme of Arrangement (SOA) under the Australian Corporations Act, and the buyout of 100% of shares to complete the acquisition is subject to the approval of the acquisition by Link's shareholders at its shareholders’ meeting, and the approval of the Australian court and regulatory authorities.

The acquisition is at par with MUFG's strategy of investments in growing business areas such as Global Asset Management and Investor Services Business and inorganic strategic acquisitions of global fund administration companies. 

This buyout of global pension and stock administration functions will enable MUFG to further accelerate its global business expansion via access to Australian funds and global corporate clients, facilitating the Global IS Business in offering a broad range of solutions, allowing it to strengthen its global reach, develop growth opportunities, and expand its business scale.

The share purchase is expected to take place from June 2024 onwards if all proceeds as scheduled.

Price Action: MUFG shares closed lower by 3.88% at $8.42 on Friday.

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