TOKYO (Reuters) – Japan’s Mitsubishi UFJ Financial Group (MUFG) said on Thursday it would invest $936.7 million in U.S. Bancorp to raise its stake in the U.S. bank to 4.4%.
U.S. Bancorp will issue 24 million common shares at $39.00 each to MUFG and use the proceeds to satisfy a portion of its previously announced repayment obligation to MUFG.
The payment is in connection with MUFG’s $8 billion sale of its U.S. retail banking unit MUFG Union Bank to U.S. Bancorp last year.
In the deal, U.S. Bancorp received $3.5 billion in additional cash held by MUFG Union Bank which the U.S. bank is required to repay.
MUFG also said it has agreed with a bank subsidiary of U.S. Bancorp on U.S. dollar liquidity support to strengthen its sustainable non-Japanese yen funding capacity.
(Reporting by Makiko Yamazaki; Editing by Tom Hogue and Muralikumar Anantharaman)
