Jul. 29–TOKYO–UFJ Holdings Inc. said Tuesday that investment fund Sovereign Asset Management of Monaco has purchased an equity stake of more than 5 percent in the nation’s fourth-largest bankinggroup to become the biggest single shareholder.
It is the first time that a foreign investor has become the biggest shareholder in one of the nation’s four biggest banking groups.
UFJ said it welcomes Sovereign’s move as it considers the Monaco-based fund a global investor with long-term investment strategies.
“We have established a good, sustained relationship. They (Sovereign) highly appreciates our management policy of emphasizing shareholders’ interest,” a senior UFJ official said.
Sovereign said in a statement it has no current intention of further raising its stake in UFJ and its investment is intended for long-term holdings.
“Sovereign views its investment as long-term, and is a recognition of UFJ’s uniquely strong emphasis on shareholder value and good corporate governance,” it said. “Sovereign is not a hedge fund, does not use leverage and has never engaged in short sales of securities.” The fund said its holding in UFJ stands at 296,000 shares representing 5.87 percent of outstanding common shares, or 5.11 percent of total shares including preferred shares.
Sovereign first invested in UFJ in December 2002, and senior management of the two entities have established a positive investor relationship, with regular meetings in Tokyo and Monaco, Sovereign said.
“UFJ truly stands out in the Japanese banking sector. We are confident that UFJ has the right management and strategy in place to strengthen its position as a leading Japanese financial institution,” James Fitter, chief executive officer of Sovereign, said in a statement.
Headquartered in Monaco, Sovereign is a portfolio investment firm with 20 years of experience in capital markets around the world.
It has been the largest portfolio investor in markets as diverse as Brazil, the Czech Republic and Russia, it said.
Sovereign is the largest shareholder of SK Corp., South Korea’s biggest oil refiner, which holds a major stake in its ailing affiliate SK Global.
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