MUFG purchases 100% stake in Australian holding group

The acquisition is valued at AU$1.1b.

Mitsubishi UFJ Trust and Banking Corporation, a subsidiary of MUFG, will acquire 100% of the issued shares of Link Administration Holdings Limited (Link Group), an Australian-listed company, and incorporate Link Group as its subsidiary, it said in a statement.

The acquisition, valued at AU$1.1b, will be conducted through a Scheme of Arrangement (SOA) under the Australian Corporations Act.

The Scheme Implementation Deed (SID) outlining the terms of the agreement for the acquisition was signed with Link Group. The completion of the SOA and the acquisition of 100% of shares are subject to approval by Link Group's shareholders at its meeting, as well as approval from the Australian court and regulatory authorities.

MUFG aims to meet diverse client needs by providing administration services and value-added financial services to global investment funds, asset managers, and pension funds. Link Group is an Australian pension administration company, serving approximately 41% of Australian private pension members.

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Through this acquisition, MUFG aims to accelerate global business expansion, gain access to Australian funds and global corporate clients, strengthen its Global Investor Services Business, and enhance its global reach. 

Link Group's digital platform, offering administration services to over 100 million beneficiaries worldwide, will contribute to MUFG's growth opportunities and business scale.

The acquisition will be carried out through a Scheme of Arrangement, subject to various conditions, including approval at Link Group's shareholders' meeting, approval from the Australian court, and clearance from the Australian Foreign Investment Review Board. 

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