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Highlights:
- Link shares closed 7.85% lower from its previous close on Monday (26 September 2022).
- The acquisition talk between Link and Dye 7 Durham has been terminated.
- The software company has determined to distribute 8 cents of special dividend amongst its shareholders.
Australian software and services company, Link Administration Holdings Limited (ASX:LNK) was on the radar today (26 September 2022). Link shares opened at AU$3.00 per share, 9.36% lower than its previous close.
Throughout the trading session, the shares were in the red. The shares closed 7.85% down at AU$3.05 apiece. Meanwhile, the benchmark index, ASX 200 Information Technology (INDEXASX:XIJ) closed 1.11% up at 1,418.10 points.
What’s happening in Link oflate?
On 23 September 2022, the company shared via ASX announcement that Link Group will not proceed with the proposed group acquisition by Dye & Durham Corporation. The group informed the market that the three conditions necessary to implement the scheme were not satisfied. The conditions were – the Woodford Matters condition, the UK Financial Conduct Authority condition and the Luxembourg Commission de Surveillance du Secteur Financier condition.
As per the scheme implementation deed, the time for satisfying these outstanding conditions precedent has expired.
In addition to this, during the second court hearing, the court declined to approve the scheme and dismissed the proceedings.
The group has considered paying a special dividend to its shareholders.
Details of the dividend announced
The group has announced a special dividend of 8 cents per share. Reportedly, the dividend is fully franked.
The dividend announced is an addition to the half-yearly dividend of 3 cents, which was distributed in April 2022. This takes the half-yearly dividend to 11 cents per share. In the financial year 2021, the company announced a half-yearly dividend of 10 cents per share, which was 60% franked.
As per the release, the record date is 30 September 2022, and the tentative payment date is 14 October 2022.
What’s next for Link Group?
Link Group shared its intention to assess alternatives for the company, including in special distribution of at least 80% of the shareholding in PEXA, aiming to maximise shareholder value.
Management Commentary
On the termination of deal, the CEO of Dye & Durham, Matthew Proud, commented:
