Ann: Becoming a substantial holder from MUFG, page-2

Good evening folks.

"Borrowed by an entity controlled by Morgan Stanley - see Annexure C"

"Prime broker has the right to vote securities rehypothecated from the Client"

Source: https://www.investopedia.com/terms/r/rehypothecation.asp

What Is Rehypothecation?

Rehypothecation is a practice whereby banks and brokers use, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees. In a typical example of rehypothecation, securities that have been posted with a prime brokerage as collateral by a hedge fund are used by the brokerage to back its own transactions and trades.

Key Takeaways

• Rehypothecation occurs when the lender uses its rights to the collateral to participate in its own transactions, often with the hopes of financial gain.
• Hypothecation occurs when a borrower promises the right to an asset as a form of collateral in exchange for funds.
• Rehypothecation was a common practice until 2007, but hedge funds became much more wary about it in the wake of the Lehman Brothers collapse and subsequent credit crunch in 2008-09.

You learn something every day........

KKR