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Highlights:
- Link Group has so far received three confidential proposals from Dye & Durham to acquire parts of Link’s business.
- According to announcement, Link has rejected the first two proposals and is considering the third proposal worth AU$1.27 billion.
Digitally enabled business, Link Administration Holdings Limited (ASX:LNK), on Wednesday (5 October 2022), shared via ASX that it has recently received three confidential proposals from Dye & Durham. The company is considering the third proposal made by Dye & Durham for buying parts of the business for AU$1.27 billion.
Link Group is a technology-enabled administrator of financial ownership of data. Four company divisions are retirement and superannuation solutions, fund solutions, corporate markets and banking and credit management (BCM).
Details of the proposals by Dye & Durham
According to the media release, last week, Link received a non-binding, conditional and indicative offer to buy the corporate market business of Link for AU$950 million.
On 2 October, Link received a second non-binding, indicative and conditional proposal to buy its corporate market business and parts of BCM business. Parts of BCM business means those parts of the business that do not hold or deal with non-performing loans.
The second confidential proposal includes a cash consideration of AU$1.1 billion on a debt and cash-free basis. Also, the proposal was based on a normalised level of working capital.
These proposals were subject to due diligence, regulatory approvals and negotiation of transaction documentation.
Link group, after assessing both the proposals, and considering all the circumstances, decided not to engage with these proposals presented by Dye & Durham.
On 5 October 2022, Link Group received the third proposal, which is also a non-conditional, indicative and conditional proposal. Dye & Durham proposes to acquire the corporate market business and BCM business of Link for a total consideration of AU$1.27 billion. Just like the second proposal, this proposal is also based on a normalised level of working capital.
Worth mentioning here is that the third proposal highlights that the discussion would take place on an exclusive basis.
Link's response to third proposal
As per ASX announcement, the board would assess the third proposal by taking advice from legal, financial and tax advisers. The shareholders can expect an update on the same by the next week.
Share performance of Link
Link shares marked significant gains on the ASX today. At 11:39 AM AEDT, Link was spotted trading at AU$3.100, 6.35% higher. With this, the Link share price has increased by 6.16% in the last five trading sessions. On a year-to-date basis, it has fallen by 44.34% and recorded a fall of nearly 40% in the past six months. In one month, the Link share price has dropped 25.66%.
