The Link Group board is open to a takeover bid from a global investment firm but has advised that it must develop a “revised proposal”.
Earlier this month, Carlyle submitted a proposal to acquire 100 per cent of Link Group's shares and on Monday (15 November), the data administrator board provided an update.
“The board consider that it is appropriate to provide Carlyle with due diligence information on a non-executive basis so that it can develop a revised proposal that is not subject to further due diligence and may be capable of being recommended to shareholders,” a statement reads.
“The due diligence information will be provided subject to extension of the confidentiality agreement between Link Group and Carlyle, including the standstill.”
Link Group has reiterated that there is no certainty that the proposal will eventuate.
Following news of the proposal, investment manager VanEck’s deputy head of investments and capital market, Jamie Hannah, deemed the bid an attractive offer with a “large premium” at 24 per cent.
“As a shareholder in Link, we would suggest the board review the offer, but remain focused on its expected growth targets,” Mr Hannah said.
“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."
Meanwhile last week, a syndicate led by Pepper European Servicing Limited submitted a bid to acquire Link Group’s banking and credit management business for up to $86.5 million.