Dye & Durham revises Link’s (ASX:LNK) acquisition bid again, shares gain

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Dye & Durham revises Link’s (ASX:LNK) acquisition bid again, shares gain

 Dye & Durham revises Link’s (ASX:LNK) acquisition bid again, shares gain
Image source: © Jlvdream | Megapixl.com

Highlights:

  • Dye & Durham has increased Link’s acquisition bid from AU$4.30 per share to AU$4.57 per share.
  • Last week, Link rejected the AU$4.30 per share of an acquisition bid by Dye & Durham.
  • Shares of Link Group gained over 6% on the ASX on Thursday to become one of the top gainers.

ASX-listed software and services company, Link Administration Holdings Limited (ASX:LNK), on Thursday, shared an update in relation to the acquisition of the Link Group by Dye & Durham Corporation. Link informed the market that Dye & Durham has lifted the base scheme consideration to AU$4.57 per share, from AU$4.30 per share.

If an investing enthusiast would be tracking the proposed acquisition of Link Group by the Canadian cloud software company, Dye & Durham, he would know that on 27 June 2022, Dye & Durham had reduced the acquisition bid to AU$4.30 per share. On 4 July, Link advised that it has rejected the takeover bid.

On 22 December 2021, when parties entered into the scheme implementation deed (SID), the proposed acquisition consideration was AU$5.50 per share.

Today, Dye & Durham has revised its bid for the second time, which is still lower than the base scheme consideration mentioned in SID.

For context, in line with the scheme implementation deed, if Dye & Durham agrees to sell the Banking and Credit Management (BCM) business of Link Group, Link shareholders are entitled to receive a further 13 cents per share from the proceeds from the sale of BCM business.

How did Link respond to the revised acquisition bid?

Image source: © Timonschneider | Megapixl.com

Link said its board would take into consideration the revised offer and seek advice from its advisers. The company added that it is talking with Dye & Durham in relation to reaching an agreed position.

In case the transaction does not progress, then the group intends to assess alternatives. The alternatives include an in-specie distribution of at least 80% of the company’s shareholdings in PEXA Group Limited (ASX:PXA).    

How are Link shares reacting to this news?

Shares of Link Group surged by 6.27% to become the second best performing stock on the ASX 200 today. At 10:28 AM AEST, the shares were spotted trading at AU$4.07 per share. Including today’s gain, the share price has increased by 8.42% in the last five trading sessions.

The share price has dropped by more than 25% in the last six months. Yearly fall is more than 18%. In the past five years, the shares tumbled by over 46%.

Worth mentioning here is that the benchmark index, ASX200 Info Tech (INDEXASX:XIJ) was 0.48% down to 1,421 at 10:51 AM AEST.

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