MUFJ Trust and Banking Corporation acquires Link Administration
Mitsubishi UFJ Trust and Banking Corporation, a consolidated subsidiary of MUFG, has decided to acquire 100% of the issued shares of Link Administration Holdings (Link Group), an Australian listed company, and to commence the process of incorporating Link Group as its subsidiary.
The Acquisition will be implemented by way of a Scheme of Arrangement (SOA) under the Australian Corporations Act, which is a method of acquiring 100% of the shares of an Australian listed company. The Scheme Implementation Deed (SID) was signed with Link Group today, setting out the terms of the agreement for the Acquisition.
The implementation of the SOA and the acquisition of 100% of shares to complete the Acquisition is subject to the approval of the Acquisition by Link Group’s shareholders at its shareholders’ meeting, and the approval of the Australian court and regulatory authorities.
Strategic significance of the Acquisition
MUFG’s strategy for sustainable growth and improved profitability includes investments in growing business areas, one of which is the Global Asset Management & Investor Services Business, and as such, it has hitherto completed inorganic strategic acquisitions of global fund administration companies. The goal of MUFG’s Global Investor Services (IS) Business is to meet client’s diverse needs by providing administration services and value-added financial services to global investment funds, asset managers and pension funds, and to be an infrastructure provider in the financial markets.
Link Group is the leading and largest Australian pension administration company, providing services to approximately 41% (10 million accounts) of Australian private pension members. Link Group also provides stock administration services that connect issuers and stakeholders in Australia, the U.K., and India, including share registry administration, employee share plans and investor relations, and has leading market shares in each country. Through the development of these businesses, Link Group’s digital platform is used to provide administration services to over 100 million beneficiaries worldwide.
This Acquisition 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.
Timetable of the Acquisition
The Acquisition will be implemented by way of a SOA under the Australian Corporations Act and is subject to a number of conditions, including the approval of the proposed Acquisition at Link Group’s shareholders’ meeting (by at least 75% of the votes cast as well as a majority of votes of shareholders present and voting), the approval of the Australian court, and the approval of the Australian Foreign Investment Review Board. Subject to fulfilling the conditions, MUTB shall acquire all outstanding Link Group shares, including those which did not vote or voted against the Acquisition. Details of the SOA, including the consideration per share, conditions, precedents, procedures, representations and warranties, timetable, etc., will be set out in the SID.
The share purchase is expected to take place from June 2024 onwards if all proceeds as scheduled.
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