Jefferies Up 9% After Partnering With Sumitomo Mitsui Banking

(RTTNews) - Shares of Jefferies Financial Group Inc. (JEF) are climbing more than 9% Wednesday morning after the company announced strategic partnership with Sumitomo Mitsui Banking Corporation (SMBC).

As per the deal, the two companies will collaborate in the corporate and investment banking business.

SMBC Group is expected to provide financing to Jefferies Finance LLC as $1.65 billion in revolving credit facility and $250 million subordinated loan, and $350 million to Jefferies Group LLC as revolving credit facility.

Additionally SMBC Group intends to Purchase up to 4.9% of Jefferies common Shares in the open market, about $386 million equity investment based on the closing stock price as of July 13, 2021.

JEF touched a new high of $35.17, before sliding to trade at $34.82 currently.