Mitsubishi UFJ unit to buy Australia’s Link Administration for A$1.2 billion

AUSTRALIA’S Link Administration said on Monday (Dec 18) that a unit of Mitsubishi UFJ Financial Group (MUFG) has agreed to buy the company for an equity value of A$1.2 billion (S$1.07 billion).

Under the deal, Link Administration shareholders will receive A$2.10 in cash, in addition to a dividend of A$0.16 per share, expected to be paid by the company, resulting in a total of A$2.26 per share, implying an enterprise value of A$2.1 billion.

The Japanese banking company had a 6.4 per cent stake in the share registry firm as at Nov 27.

“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,” Mitsubishi said.

The share purchase, which is expected to take place from June 2024 onwards, is subject to shareholder approvals as well as court and regulatory authorities.

The Link board said it recommends that Link shareholders vote in favour of the scheme in the absence of a superior proposal. REUTERS