Sumitomo to boost its ownership stake in investment bank Jefferies to 15% from 4.5%
Sumitomo Mitsui Financial Group Inc. (8316.TO) said Thursday it will increase its ownership stake in investment bank Jefferies Financial Group Inc. (JEF) to 15% from 4.5% as part of a planned expansion of the corporate and investment banking relationship that the two firms inked in 2021. Sumitomo's $2.25 billion investment in Jefferies from 2021 is now valued at about $3.4 billion. SMBC and Jefferies will seek shareholder approval of Jefferies shareholders for a new class of non-voting common shares, to boost its ownership position in Jefferies through direct and indirect open-market purchases of Jefferies' common stock, which will be exchanged for non-voting preferred shares. These non-voting preferred shares bill be mandatorily convertible into non-voting common shares, the companies said. Shares of Jefferies are up 2.4% in premarket trades. U.S.-listed shares of Sumitomo are up 3% in 2023, compared to a 5.6% increase by the S&P 500 .
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-27-23 0648ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom
-
Albemarle Earnings: We Expect Improved Results In the Rest of Year Following Cyclically Low Profits