Link Group’s Shares Uplifted On ASX After Providing Update On PEXA Trade Sale

  • Nov 06, 2018 AEDT
  • Team Kalkine
Link Group’s Shares Uplifted On ASX After Providing Update On PEXA Trade Sale

On 6 November 2018 (Tuesday), Link Administration Holding Limited (ASX: LNK) announced that Property Exchange Australia Limited’s (PEXA) shareholders have accepted the offer which was made by a consortium comprising Link Group, Commonwealth Bank of Australia and Morgan Stanley Infrastructure Inc to acquire PEXA. Following this news, the share price of the company increased by 2.459 percent as on 6 November 2018.

As per the offer, Consortium will have to pay enterprise value of up to approximately $1.6 billion, depending on the level of final acceptance to the Trade Sale Offer received by PEXA’s shareholders. Currently, the Link Group’s interest in PEXA shareholding is 19.8% and after the trade sale, it will be between 27% and 44%. Link Group is planning to fund its increased investment through available cash and headroom under its existing debt facilities, hence it is not required to raise any equity to complete the Trade Sale Offer. 

PEXA is Australia’s online property exchange network and a few days back it was planning to raise as much as $750 million and list on the ASX. However, the company's board recently decided to pull the plug on its IPO plan and accepted the offer of the private sale of the business to a consortium comprising Link Group, Commonwealth Bank of Australia and Morgan Stanley Infrastructure Inc. Earlier on 23 October 2018, Link Group made an announcement regarding its intention to sell part of its current shareholding in PEXA, subject to PEXA proceeding with an IPO. However, as the Trade Sale Trigger has since been achieved, and the IPO has been canceled, Link Group will no longer sell any of its stake in PEXA.

In FY 2018, the Link Group completed the purchase of Capita Asset Services (renamed as Link Asset Services, or LAS) for $1,548 million from Capita plc which represent the group’s strategy to grow through further penetration of attractive markets, enabling it to provide an expanded range of products and services to its clients. LAS acquisition has had a strong positive impact on Link Group as both Operating EBITDA and Operating NPATA benefited from its inclusion in group results. In FY 2018, the board declared a final dividend of 13.5 cents per share, which is 100% franked and together with the interim dividend of 7 cents per share, it represents 60% of NPATA, which is at the top end of the Board’s dividend policy of paying between 40% and 60% of NPATA.

In FY 2018, the revenue of Link Group increased by 54% to $1,198.4 million as compared to the last year. The operating EBIT of the group increased by 53% to $335.3 million and Operating NPATA increased by 67% to $206.7 million. And further, the Statutory Net Profit After Tax (NPAT) of the group increased by 68% to $143.2 million as compared to the last year.

In the last six months, the share price of the group decreased by 12.12 percent as on 5 November 2018, traded at a PE ratio of 25.630x. LNK’s shares traded at $7.500 with a market capitalization of $3.88 billion as on 6 November 2018 (AEST 1:40 PM).


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK