Jefferies and SMBC Expand Strategic Alliance; SMBC to Increase Ownership to Up to 15%

Jefferies Financial Group Inc.

SMBC to increase economic ownership to up to 15% on an as-converted, fully diluted basis via share purchases.
SMBC will exchange voting common shares for non-voting convertible preferred at 500:1 rate, paying $1.50 per share exchanged.
SMBC gets board designation right once economic ownership reaches 10% or more; total financial commitment ~$3.4B.
Special shareholder meeting expected in July 2023 to approve creation of non-voting common stock.
Alliance expanded to include joint coverage of U.S. investment-grade clients, equities, and M&A collaboration.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Jefferies Financial Group Inc. entered into Exchange Agreement with Sumitomo Mitsui Banking Corporation (effective 2023-04-27).

Action: entry
Counterparty: Sumitomo Mitsui Banking Corporation
Effective: 2023-04-27

Exact text from the filing

On April 27, 2023, Jefferies Financial Group Inc. (the “ Company ”) entered into an Exchange Agreement (the “ Agreement ”) with Sumitomo Mitsui Banking Corporation, a joint stock company incorporated in Japan (“ SMBC ”), in connection with the expansion and strengthening of the Company’s strategic alliance with SMBC (the “ Alliance ”).

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Jefferies Financial Group Inc. filing history →

Source: SEC EDGAR

accession 0000950157-23-000396

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