Japan’s Mitsubishi UFJ to buy Link Group for $1.2b

The news: Japanese financial services giant Mitsubishi UFJ Financial Group has agreed to acquire superannuation and investment administration services provider Link Group.

The numbers: Link said under the deal agreed, its shareholders would receive $2.10 a share in cash, plus a dividend of 16 cents a share, franked at 25%, implying an equity value of $1.2 billion. This translates to a 32.9% premium to Link’s $1.70 closing price on Friday.

The context: Link Group’s board has unanimously recommended the deal, in the absence of a superior proposal. CEO Vivek Bhatia said the transaction would be significantly beneficial to Link’s clients and employees, with MUFG’s long term investment horizon likely to bolster the company’s growth strategy. The Japanese pension and stock administration provider, in turn, said the deal would allow it to expand its global expansion plan. The deal is expected to be closed in June 2024. It comes just days after Link Group settled a regulatory investigation related to its UK subsidiary, the ongoing costs of which had resulted in a full year statutory loss.