In a filing to the ASX, Link Group confirmed its shareholders are set to receive $5.50 per share in cash under the scheme of arrangement inked with Dye & Durham, plus a $0.03 per share interim dividend expected to be paid by Link Group and franked at 100 per cent.
In addition, Link Group noted that if it reaches an agreement to sell the banking and credit management (BCM) business, shareholders would receive an additional $0.15 per share. As such, the base consideration, interim dividend and the indicative BCM consideration represent $5.68 per share in cash.
Link Group also confirmed it intends to pay a further special dividend of approximately $0.08 per share, which would be deducted from the base consideration.
The group’s board has “unanimously recommended” that Link Group shareholders vote in favour of the scheme in the absence of a superior proposal.
The binding agreement with Dye & Durham follows Link Group’s announcement on 5 November 2021 that it had received a conditional, non-binding proposal from Carlyle, which chose not to follow through with a binding offer.
Commenting on the events, Link Group chairman Michael Carapiet said: “After receiving a conditional, non-binding proposal from Carlyle on 4 November 2021, the board said that it would continue to assess all alternatives that have the potential to optimise the interests of Link Group and its shareholders.”
“The board also announced that it would assess a number of other standalone value creation initiatives including the sale of non-core assets and the potential demerger of Link Group’s shareholding in PEXA via an in-specie distribution to shareholders.
“During this time, Dye & Durham expressed its interest in Link Group with a condition of commercial confidentiality. Dye & Durham has now completed its due diligence and delivered an offer to the Link Group Board,” Mr Carapiet explained.
The proposed transaction is being considered “an endorsement of Link Group’s leading global technology enabled platform”.
“The combination with Dye & Durham will support our growth strategy and create significant opportunities for our employees and our customers. I am excited to partner with Dye & Durham for this next stage of Link Group’s journey,” said Link Group chief executive officer and managing director Vivek Bhatia.
