MUFG is to get 24,9 % of Morgan Stanley
7 October 2008Federal Reserve System of the USA has approved transaction on purchase 24,9 % of share capital Morgan Stanley by the Japanese bank Mitsubishi UFG Financial Group (MUFG). Such data has been represented in FRS’s official documents. Meanwhile nothing is informed on details of the transaction.
Earlier it was informed, that MUFG gets 21 % of Morgan Stanley’s share capital for 9 billion dollars. Transaction has been divided on two parts: the Japanese bank should get 9,9 % of ordinary shares of Morgan Stanley for 3 billion dollars at the rate of 25,25 doll./share.
Besides, MUFG should also get convertible preference shares of the American bank for the sum of 6 billion dollars. Converting price of preference shares has been established at the level of 31,25 doll./share. Thus the Japanese bank acquires the right to dividends in volume of 10 % on Morgan Stanley’s preference shares.
After end of the transaction one of Mitsubishi UFG’s representatives will be included into Morgan Stanley’ board of directors.
Mitsubishi UFJ Financial Group Inc. is formed in 2005. In result of merge in cost of 30 billion dollars, it was carried out by two large Japanese banks - Mitsubishi Tokyo Financial Group and UFJ Holdings. In result incorporated corporation has selected a palm tree of superiority in bank sector at American Citigroup, before association of the Japanese banks was considered as the world’s largest bank. Mitsubishi UFJ has 80 thousand employees.
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