Mitsubishi UFJ set to acquire Link Group in major financial sector move

Mitsubishi UFJ Trust and Banking Corporation, a subsidiary of MUFG, has declared its intention to acquire 100% of the issued shares of Link Administration Holdings Limited, an Australian listed company. This move is set to reshape the dynamics of the global asset management and investor services sector.

Shareholder Windfall: The Financial Details

Under the proposed acquisition scheme, shareholders of Link Group will receive A$2.26 per share, including a dividend payment. This deal values Link Group’s equity at A$1.2 billion, with an enterprise value of A$2.1 billion, marking a substantial premium over its recent stock market performance.

Strategic Growth: MUFG’s Vision

This acquisition aligns with MUFG’s strategy for sustainable growth and enhanced profitability. It focuses on expanding its Global Asset Management & Investor Services Business, aiming to offer diverse and value-added services to a global clientele. Link Group, with its extensive reach in pension and stock administration, emerges as a critical asset in this strategy.

Major Acquisition Alert: Mitsubishi UFJ Trust Eyes Full Ownership of Link Administration Holdings Limited

The Scheme of Arrangement: Process and Conditions

The acquisition process involves a Scheme of Arrangement under the Australian Corporations Act. This requires approval from Link Group’s shareholders, the Australian court, and regulatory authorities. The deal hinges on achieving a minimum approval rate from Link Group’s shareholders and passing the scrutiny of the Australian Foreign Investment Review Board.

Link Group: A Snapshot

Link Group, established in 2006 and listed on the ASX in 2015, is a leader in pension and stock administration, operating across multiple countries. With a revenue of AUD 956 million and an EBITDA of AUD 248 million for the fiscal year ended June 30, 2023, the company employs approximately 6,300 people worldwide.

Impact on Global Business Landscape

The acquisition is poised to significantly enhance MUFG’s global presence in the financial sector. It will provide Mitsubishi UFJ Trust with access to Australian funds and global corporate clients, bolstering its position in offering comprehensive financial solutions.