UFJ Group to pay $802M for Australia's Pension Administration firm

Mitsubishi UFJ Financial Group will pay A$1.2 billion ($802.7 million) for Australian pension administration firm Link Administration, as Japan's largest banking group expands its fund administrator business. It is Mitsubishi UFJ's seventh acquisition in the fund administration industry in the last decade, following the 2015 acquisition of UBS Asset Management's alternative fund services business.

Link said its shareholders will receive A$2.10 in cash, or A$1.11 billion in total, in addition to the company's dividend of A$0.16 per share, implying an enterprise value of A$2.1 billion.

The purchase price represents a 23.5% premium over Friday's closing price.

Mitsubishi UFJ, which owned 6.4% of the share registry firm as of Nov. 27, said in a statement that the acquisition "will enable MUFG to further accelerate its global business expansion via access to Australian funds and global corporate clients." According to a Japanese banking executive, Link will help the group expand into new markets such as Canada and the Netherlands, as well as improve the efficiency of its fund administration business by consolidating some operations.

The share purchase, which is expected to begin in June 2024, is subject to shareholder approval as well as approval from court and regulatory authorities.