Mitsubishi UFJ Financial Group, Inc. (MUFG) has decided to purchase shares of common stock of Morgan Stanley in the public offering announced by Morgan Stanley on May 8, 2009 (Tokyo Time) as described below. In addition, MUFG has agreed with Morgan Stanley that Morgan Stanley will repurchase from MUFG part of its current holding of non-convertible preferred stock of Morgan Stanley as described below on condition that MUFG having purchased and acquired common stock of Morgan Stanley through the public offering as described above.
MUFG and Morgan Stanley are currently engaged in discussions on a global strategic alliance in a broad range of fields, including corporate finance and investment banking, retail financial business, and asset management. The purpose of this investment by MUFG is to maintain and strengthen the strategic alliance between MUFG and Morgan Stanley.
Details of the acquisition of common stock and partial sale of preferred stock
Acquisition of common stock
Number of shares to be acquired: 25,000,000 shares
Total amount of share acquisition: US$600,000,000 (US$24 per share)
Closing date: May 13, 2009Partial sale of preferred stock
Series of preferred stock: 10% Series C Non-Cumulative Non-Voting Perpetual Preferred Stock
Total sales price: US$600,000,000 (US$1,100 per share)As a result of these transactions, MUFG will hold more than 20% of the common shares of Morgan Stanley (assuming full conversion of the Morgan Stanley convertible preferred stock owned by MUFG ).
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