Additional Acquisition of Shares and Consolidation of Sumitomo Mitsui Asset Management Company(1/1)
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
Additional
Acquisition of Shares and Consolidation of Sumitomo Mitsui Asset Management
Company
Tokyo, May 12, 2016 --- Sumitomo Mitsui Banking Corporation (SMBC, President
and CEO: Takeshi Kunibe) today reached an agreement with Sumitomo Life
Insurance Company, Mitsui Sumitomo Insurance Company, Limited and Mitsui Life
Insurance Company Limited (collectively, gShareholdersh) that SMBC will,
subject to the relevant regulatory approvals, acquire an additional 20.0% of
the outstanding shares of Sumitomo Mitsui Asset Management Company, Limited (SMAM)
from the Shareholders (the gAdditional Acquisitionh).
After the Additional Acquisition,
SMAM will be a consolidated subsidiary of SMBC. In addition, Sumitomo Mitsui
Financial Group, Inc (SMFG, President: Koichi Miyata) will acquire all outstanding
shares of SMAM held by SMBC, and SMAM will be a directly owned subsidiary of
SMFG, which is contemplated to take place in October 2016.
1. Purpose of the Additional
Acquisition
Given the trend of gfrom savings to investmenth, such as
implementation of gNippon Individual Saving Accounth in January 2014, the asset
management industry is growing year by year. In addition, due to the introduction
of gQuantitative and Qualitative Monetary Easingh in April 2013 and gQuantitative
and Qualitative Monetary Easing with a Negative Interest Rateh in February 2016
by Bank of Japan, we recognize increasing investor appetite for asset
management.
The aim of the Additional Acquisition is to further enhance SMFGfs
services to comprehensively meet its clientsf needs for asset management.
We will utilize various group-wide resources to grow SMAM to be
chosen by clients for asset management. Also, we will reinforce efforts to
fulfill our fiduciary duty to provide enhanced customer-oriented investment
services.
2. Overview of the Additional Acquisition
The shareholding ratio after the Additional Acquisition is described
in the table below. The Additional Acquisition is contemplated to take place by
the end of July 2016, subject to the relevant regulatory approvals.
Shareholders |
Shareholding
ratio |
SMBC |
60.0% (40.0%) |
Sumitomo
Life Insurance Company |
20.0% (27.5%) |
Mitsui
Sumitomo Insurance Company, Limited |
20.0% (27.5%) |
Mitsui
Life Insurance Company Limited |
|
(5.0%) |
Note: The numbers in parentheses show the current
shareholding ratios.
3. Future course of action
As part of efforts to
fulfill its fiduciary duty, as stated previously, SMAM will be a directly owned subsidiary of SMFG.
[Corporate Profile of SMAM]
Company
Name : Sumitomo
Mitsui Asset Management Company, Limited
Primary
Business :
Investment
Management (Discretionary/Advisory)
Investment
Trust Fund Management
Location
of Head Office : 2-5-1
Atago, Minato-ku, Tokyo, Japan
Representative : Kunio
Yokoyama, President and CEO
Number
of Employees : 628
(as of March 1, 2016)
Assets
Under Management : Approximately
JPY 12,281 billion
(as of January 31, 2016)
End.