Mitsubishi UFJ Trust and Banking Corporation, a subsidiary of Japan’s MUFG, has agreed to acquire Sydney-headquartered pension administration company Link Administration Holdings in a deal valued at A$1.2 billion ( US$806 million ).

The purchase will be implemented by way of a scheme of arrangement ( SOA ) under the Australian Corporations Act, enabling the Japanese firm to acquire 100% of the shares of an Australian-listed company.

In making the buyout move, Mitsubishi UFJ Trust cites the significant growth opportunities ahead for The Link Group. The Australian firm currently administers financial ownership data for over 6,000 clients globally, servicing an underlying stakeholder base of approximately 10 million superannuation account holders and over 40 million individual shareholders.

“Link Group is a leading global service provider of pension and stock administration solutions using advanced data and technology platforms, and we are very excited to welcome Link Group to the MUFG family,” says Takafumi Ihara, Mitsubishi UFJ Trust senior managing executive officer and business head of MUFG Investor Services.  “The Trust Bank is one of the largest pension and stock administration providers in Japan and we look forward to jointly growing in this space.”

The acquisition will enable MUFG to accelerate its global business expansion, “with access to the Australian superannuation funds and global corporate clients to service with our broad range of MUFG solutions”, Ihara adds.

Link Group’s board is recommending that shareholders vote in favour of the SOA in the absence of any superior offers. If the proposal is approved, Link Group shareholders will receive A$2.10 cash per share plus a dividend of A$0.16 cash per share.

The deal values Link Group's equity at A$1.2 billion and implies an enterprise value of A$2.1 billion, a significant premium of 32.9% to the company’s closing price on December 15.