Key Takeaways
- • Meiji Yasuda Life Insurance plans to acquire a 5% stake in Man Group, the London-based firm described as the world's largest publicly traded hedge fund, according to a Monday statement by Meiji Yasuda.
- • The stake is valued at about £179 million ($239 million) based on the Oct. 23 closing price.
- • Meiji Yasuda intends to entrust ¥200 billion ($1.3 billion) to Man Group over the next three years.
- • The deal marks Meiji Yasuda's first major investment in an overseas asset manager.
- • Man Group shares rose as much as 4.9% in early London trading, their biggest intraday gain in more than a month.
Summary
Japanese insurer Meiji Yasuda Life Insurance is taking a stake in U.K.-based Man Group, according to a statement the company issued on Monday. The insurer plans to acquire 5% of Man Group, which the company describes as the world's largest publicly traded hedge fund. Based on the closing price on Oct. 23, the stake is valued at about £179 million ($239 million).
Beyond the equity position, Meiji Yasuda plans to entrust ¥200 billion ($1.3 billion) to the London-based manager over the next three years. The transaction is the insurer's first major investment in an overseas asset manager, signaling a push by the Japanese life insurer into external asset management partnerships.
Man Group shares climbed as much as 4.9% in early London trading, the largest intraday gain in more than a month, following the announcement.
Beyond the equity position, Meiji Yasuda plans to entrust ¥200 billion ($1.3 billion) to the London-based manager over the next three years. The transaction is the insurer's first major investment in an overseas asset manager, signaling a push by the Japanese life insurer into external asset management partnerships.
Man Group shares climbed as much as 4.9% in early London trading, the largest intraday gain in more than a month, following the announcement.
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