Sumitomo Mitsui Financial Group Inc. will make an offer to UFJ Holdings Inc., possibly by the end of August, on the ratio for its proposed merger of the two banking groups, SMFG officials said Thursday.

SMFG is still pursuing its merger proposal even though UFJ signed a basic agreement with Mitsubishi Tokyo Financial Group Inc. on Aug. 12 to integrate their banking, trust banking and brokerage operations under a holding company by Oct. 1, 2005.

The officials said SMFG will calculate the merger ratio based on the market values of the two holding companies’ shares immediately before UFJ and MTFG announced their merger plan, as well as by taking into account possible financial benefits to be brought about by a merger between UFJ and SMFG.

SMFG will also release the proposed ratio to the public when it makes the offer, they said.

UFJ and MTFG have yet to announce their merger ratio. Their basic merger agreement says the ratio will be decided after “taking into account estimates by outside experts.”

SMFG has been seeking a “merger of equals” with UFJ.

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