8-KOther Events

MORGAN STANLEY 8-K Report, Corporate Update (Jun 28, 2013)

Filed June 28, 2013For Securities:MSMS-PKMS-POMS-PQMS-PAMS-PFMS-PIMS-PLMS-PPMS-PEMSTLW

Summary

Morgan Stanley (MS) filed an 8-K on June 28, 2013, reporting the completion of its acquisition of the remaining 35% interest in Morgan Stanley Smith Barney Holdings LLC (MSSBH) from Citigroup and/or its affiliates. This transaction, previously disclosed on June 21, 2013, consolidates full ownership of the wealth management joint venture under Morgan Stanley. In conjunction with the acquisition, MSSBH also redeemed all Class A Preferred Interests previously held by Citigroup and its affiliates. This move signifies a significant step in Morgan Stanley's strategy to fully integrate its wealth management operations and eliminate external ownership stakes in this key business segment.

Key Highlights

  • 1Morgan Stanley completed the acquisition of the remaining 35% interest in Morgan Stanley Smith Barney Holdings LLC (MSSBH) on June 28, 2013.
  • 2The acquisition was exercised under the terms of the Amended and Restated Limited Liability Company Agreement of MSSBH.
  • 3The seller of the remaining interest was Citigroup and/or its affiliates.
  • 4Morgan Stanley now holds 100% ownership of MSSBH following this transaction.
  • 5MSSBH redeemed all Class A Preferred Interests held by Citigroup and its affiliates on the same date.
  • 6This event reflects the full consolidation of the wealth management joint venture into Morgan Stanley's operations.

Frequently Asked Questions

The main event reported is Morgan Stanley's completion of the acquisition of the remaining 35% ownership interest in its wealth management joint venture, Morgan Stanley Smith Barney Holdings LLC (MSSBH), from Citigroup and/or its affiliates.

The acquisition and related redemption of preferred interests were completed on June 28, 2013.

This transaction means Morgan Stanley now has full, 100% ownership of its wealth management business (MSSBH), as it has acquired the previously outstanding 35% interest from Citigroup.

Yes, in addition to acquiring the remaining equity interest, MSSBH also redeemed all of its Class A Preferred Interests that were owned by Citigroup and its affiliates.