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Highlights:
- Link’s share price has been showcasing an upward momentum on the ASX today.
- Link’s board has rejected the takeover offer of AU$4.57 per share proposed by Dye & Durham.
- The company expects operating EBITDA for financial year 2023 to surge by 8 to 10%.
ASX-listed software and services company, Link Administration Holdings Limited (ASX:LNK), on Monday (11 July 2022), shared that it has rejected the updated takeover bid of Dye & Durham. Through ASX-announcement, the company said its board could not recommend AU$4.57 per share of the bid for taking control of Link Group.
Also, today the company shared unaudited results for the financial year 2022 (FY22) and updated guidance for FY23.
Following the update, the shares were spotted 0.746% higher trading at AU$4.050 at 10:45 PM AEST. Including today’s gain, the share price surged by 6.05% in the last five trading sessions. The share price dropped by 27% in six months. The yearly fall is around 18%.
Link Group is a technology-enabled administration that connects people with their assets such as investments, pension and superannuation, equities, property and other financial assets.
Link rejects Dye & Durham proposal again
On 27 June 2022, Dye & Durham reduced the bid to acquire Link from AU$5.50 to AU$4.30 per share. Reportedly, Link Group rejected the proposal of AU$4.30 per share, which was less than the consideration documented under the Scheme Implementation Deed (SIM).
After the bid rejection, Dye & Durham upgraded the base scheme consideration from AU$4.30 to AU$4.57 per share in July. In response to the updated bid, which was still less than the AU$5.50 per share of request, Link Group said it could not recommend AU$4.57 per share of the transaction.
This is the second time Dye & Durham proposed base scheme consideration has been rejected by Link’s Board. Link said that the company’s decision was announced after considering numerous factors such as:
- Feedback provided by the stakeholders.
- Change in the market valuations of Link Group, PEX and the broader market
- The range ascertained by the independent experts to be the full underlying value of the company’s share.
- Assessing the options in case the proposed transaction does not go forward.
Link said it continuously engages with Dye & Durham regarding the transaction or whether the parties can reach an agreed position.
Image source: © Timonschneider | Megapixl.com
Unaudited FY22 results
According to today’s announcement, the preliminary unaudited results for the FY22 ending on 30 June 2022 are slightly above the FY22 guidance. The company reported group revenue of AU$1,175 million. Operating EBIT was AU$152 million, and operating EBITDA was AU$250 million.
Link said it intends to publish its full-year audited results on 30 August 2022.
Updated guidance for FY23
The company estimates that FY23 revenue will grow by a low single-digit percentage. The operating EBITDA is expected to surge by circa 8 to 10%, and operating EBITDA is expected to be approximately 10 to 12% higher than FY22.
