Japan’s SMBC Group will purchase up to 4.9 percent of shares in Jefferies and also provide credit facilities to the New York-headquartered investment bank as part of a newly established strategic alliance.
SMBC Group and Jefferies have entered a strategic alliance, according to a statement, to collaborate on future corporate and investment banking business opportunities.
As part of the partnership, SMBC will also purchase up to 4.9 percent of Jefferies’ publicly traded shares valued at approximately $386 million.
«We view the Alliance as the beginning of a long-term relationship with SMBC Group, and we look forward to many years of partnering on many aspects of our respective businesses to best serve our clients,» said Jefferies CEO Rich Handler and president Brian Friedman in the statement. «We are particularly pleased to welcome SMBC Group as our soon-to-be newest shareholder.»
Business Collaborations
According to the statement, the alliance aims to enable coordinated efforts in U.S. leveraged finance business, cross-border M&A opportunities involving Japanese companies and joint pursuit of other opportunities in investment banking, capital markets and financing.
SMBC will also provide financing via a $1.65 billion revolving credit facility and a $250 million subordinated loan to affiliate Jefferies Finance and a $350 million revolving credit facility to parent Jefferies Group.
«We look forward to working with Jefferies […] and expect great things from the Alliance,» added SMBC Group president and CEO Jun Ohta and SMBC Nikko CEO Yuichiro Kondo.
