Mitsubishi UFJ to acquire Link Group

Through this acquisition, Mitsubishi UFJ Trust and Banking Corporation, the consolidated subsidiary of MUFG, focuses on increasing its fund administrator business. The current move comes as an addition to the previous six acquisitions in the fund administration industry since 2013, with past deals including UBS Asset Management’s alternative fund services business in 2015.

As per the information detailed in the press release, Mitsubishi UFJ intends to buy all issued shares of Link Group, as well as to begin the process of integrating the latter as its subsidiary. The acquirement aims to be executed through a Scheme of Arrangement (SOA) under the Australian Corporations Act. Following the announcement, the Scheme Implementation Deed (SID) was signed by Link Group, with the terms of the agreement being determined for the acquisition.

Currently, the implementation of the SOA and the acquirement of the shares are subject to the approval of Link Group’s shareholders, as well as the agreement of the Australian court and regulatory authorities. After receiving its necessary approvals, Mitsubishi UFJ will acquire all outstanding Link Group shares, and all details of the SOA, including the consideration per share, conditions, precedents, procedures, representation, warranties, and timetable, will be set out in the SID. The company projects the acquirement to take place from June 2024 onwards, if all procedures are completed as scheduled.

To support its expansion and enhance its profitability, MUFG focuses on investing in growing business areas, including the Global Asset Management and Investor Services Business. MUFG’s Global Investor Services Business (Global IS Business) objective is to meet client’s requirements and needs by offering administration and financial services to global investment funds, asset managers, and pension funds. Moreover, the company aims to solidify its position and become an infrastructure provider in the financial markets.

As a pension administration company, Link Group offers its services to 41% of Australian private pension members, with the group also providing stock administration that connects issuers and stakeholders in the region, the UK, and India. By supporting the development of these businesses, Link Group’s digital platform is leveraged to offer administration services to over 100 million beneficiaries globally. By acquiring global pension and stock administration affairs, MUFG intends to further accelerate its global business growth through access to Australian funds and corporate clients supporting the Global IS Business in providing a suite of solutions. This focuses on further strengthening the company’s global reach, creating growth opportunities, and expanding its business scale.

Source: Link