The fund administrator’s board has signalled the named price for an acquisition offer from a US tech company is not high enough, failing to present “compelling value” for its shareholders.
On Monday, Link Group declared it had received a conditional, non-binding proposal from NASDAQ-listed investment and financial software provider SS&C Technology Holdings, to acquire 100 per cent of the Australian company’s shares at an indicative price of $5.65 per share.
The Link board responded to the proposal after the company obtained advice from its financial, tax and legal advisers, noting it “does not represent compelling value for Link Group shareholders on a control basis”.
But the board has indicated it could provide SS&C with due diligence information, so it can form a proposal that it could stand to recommend to shareholders. An endorsement from the board is one of a number of conditions that SS&C would need to satisfy before it could take over Link, alongside due diligence and secured debt financing.
There is not yet any certainty that the proposal will come to be realised.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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