Global investment firm Carlyle has been granted access to Link’s virtual data room, Q&A process, as well as Link Group’s executive leadership team as it looks to remain in the bidding for 100 per cent of the shares in Link Group, the latter confirmed in an ASX filing on Tuesday.
Carlyle submitted its conditional, non-binding indicative proposal to acquire 100 per cent of the shares in Link Group by way of a scheme of arrangement on 4 November 2021.
Link has been the subject of several buyout bids over the past year.
Just last week, Link confirmed that a syndicate led by Pepper European Servicing Limited (PES) will commence due diligence on an exclusive basis to 17 December 2021, after it lodged a bid to acquire Link’s whole banking and credit management (BCM) business for up to $86.5 million.
However, another bidder has now entered the mix. Link confirmed on Tuesday that an unsolicited proposal has been received from one of Europe’s leading purchasers and servicers of the full life cycle of receivables, LC Financial Holdings, for Link’s entire BCM business.
LCFH proposes that it acquire BCM for up to €65 million ($101.2 million), comprising an upfront payment of €50 million plus a deferred payment of €15 million payable upon achievement of certain targets over a period of time.
The Link Group board on Tuesday decided to grant LCFH due diligence, as it considers the proposal in compliance with its fiduciary and statutory obligations.
Link’s ASX filing also confirmed it was engaging with applicable regulators, including the Australian Tax Office, in relation to a potential in-specie distribution of a minimum of 80 per cent of Link Group’s shareholding in PEXA. In particular, the Link Group is expected seek a ruling to obtain tax roll-over relief for shareholders under the demerger relief provisions.
