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New bid to acquire Link Group business

 — 1 minute read

Only a week after a proposal to acquire Link Group was submitted, another bid for the data administrator’s banking and credit management (BCM) business has been made.

On Friday, Link Group confirmed it had received a proposal from a syndicate led by Pepper European Servicing Limited (PES) to acquire its whole BCM business for up to $86.5 million.

The proposal is subject to a number of conditions including due diligence, obtaining antitrust and regulatory of change approvals.

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The Link Group board confirmed it will consider the proposal.

Last week, global investment firm Carlyle submitted a proposal to acquire 100 per cent of Link Group's shares, which VanEck deputy head of investments and capital market Jamie Hannah said represents a "large premium" at 24 per cent.

"However, Link has fallen 20 per cent since the start of the year and it is still well off its all-time high near $9. Whilst it’s a good deal for shareholders in the short term, the question arises whether it is in their best interest in the medium to long term," Mr Hannah said.

“As a shareholder in Link, we would suggest the board review the offer, but remain focused on its expected growth targets. Link enjoys a reasonably strong balance sheet, and many brokers have a buy on the stock, so there’s an expectation of future price gains."

The submission put forward by Carlyle comprises $3 per Link Group share plus a pro rata distribution of the fund administrator’s shareholding in PEXA Group to shareholders.

 

New bid to acquire Link Group business

Only a week after a proposal to acquire Link Group was submitted, another bid for the data administrator’s banking and credit management (BCM) business has been made.

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Neil Griffiths

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily. 

Neil is also the host of the ifa show podcast.

 

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