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Highlights
- Link Administration today (July 21) shared an update on its takeover by Dye & Durham.
- The update revealed that base scheme consideration for Dye & Durham has been revised to AU$4.81 per share.
- Link’s shares ended at AU$4.46 per share, up 12.63% on ASX today.
ASX-listed software and services company Link Administration Holdings Limited (ASX:LNK) shared an update on its takeover by Dye & Durham.
The base scheme consideration for Dye & Durham has been revised to AU$4.81 per share, according to the ASX statement. This is higher than its recently updated offers of AU$4.30 per share and AU$4.57 per share, even though it is less than the original base scheme consideration of AU$5.50 per share.
Meanwhile, shares of Link ended today's (21 July 2022) trading session at AU$4.46 per share, up 12.63% on ASX. This outperforms S&P/ASX 200 Information Technology Index, which closed 3.15% higher at 1,537.70 points.
Other details
Additionally, the sale of the Banking and Credit Management (BCM) company still entitles Link owners to receive net consideration of up to 13 cents per share. This is true if the company is sold, and the money is collected up to a year after the amended plan was put into place.
As soon as the updated arrangement is implemented, Dye & Durham will begin selling the Link BCM business by appointing financial advisors.
In the absence of a better plan and provided that the independent expert finds that the amended scheme is fair, and good for shareholders, the Link board unanimously recommends that shareholders vote in favour of it.
Each Link director plans to support the new scheme at the upcoming scheme meeting, provided they satisfy the same requirements.
However, the agreement still needs to pass muster with the legal system, government officials, and other formalities.
Image Source: © Wrightstudio | Megapixl.com
What was the last update on the takeover deal?
Link shared on July 11, 2022 that it has rejected the updated takeover offer put forward by Dye & Durham. The company claimed that its board could not endorse the offer of AU$4.57 per share to acquire control of the business.
, Link also shared its unaudited results for the financial year 2022 (FY22).
The preliminary unaudited results for the FY22, which ends on 30 June 2022, are marginally over the FY22 guidance. The business reported AU$1,175 million in group revenue. Operating EBIT and operating EBITDA totalled AU$152 and AU$250 million, respectively.
On 30 August 2022, Link indicated it would disclose its full-year audited results.
Link said that revenue for FY23 would increase by a low single-digit percentage. Operating EBITDA is expected to increase by about 8-10%, and it will likely be 10-12% higher than in FY22.
